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Brazil automakers sustained by exports
Mar 6, 2006 - Linknet Finance News

Brazil automakers sustained by exports

Brazil automakers sustained by exports

Mar 6, 2006 - Linknet Finance News - by Rick Hendershot

Although the Brazilian domestic market for new automobiles was down slightly in February, exports increased, keeping the overall level of vehicle production moving upwards. February production was up 3.3% over January and 3.9% over February of 2005.

Analysts had expected exports to decrease as the value of the Brazilian real strengthened. The real has gained almost 25% against the U.S. dollar since the beginning of 2005. But, in fact auto exports increased -- a sign that the Brazilian economy is stronger than expected.

Although domestic auto sales were down by 3.8% from January, this is an increase of 11.3% over February 2005.

Flex-fule vehicles continued to be the biggest sellers, accounting for 93,000 or 76.6% of the total sales. Flex-fuel vehicles run on any combination of gasoline and ethanol.

The big sellers last month were flex-fuel vehicles, which run on any combination of gasoline and ethanol, or sugarcane alcohol. Sales of flex-fuel vehicles reached 93,000 in February, a record 76.6 percent of domestic sales, Anfavea said.


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