September 6, 2018 / 6:15 PM / a year ago

UPDATE 1-Brazil automakers association may cut exports estimate

(Adds exports outlook)

By Flavia Bohone

RIO DE JANEIRO, Sept 6 (Reuters) - Brazil's automakers' association said on Thursday it would likely cut its 2018 export estimate as the Argentina crisis dampens demand in the neighboring country, the largest buyer of Brazilian cars.

A review is expected next month, the trade group Anfavea told journalists at a news conference. Until July, when it changed its industry outlook to stable, Anfavea was foreseeing exports would go up in 2018.

Automobile exports were up 9.2 percent in August from a month ago, but tumbled 16.6 percent from the year-ago period.

The Argentinian peso has lost around 50 percent of its value this year in a financial crisis, making it one of the worst performing emerging market currencies. Economists expect Latin America's third-largest economy to slide into recession this year.

Overall, automobile production in Brazil jumped 18.6 percent in August from July, while sales climbed 14.3 percent, led by domestic demand, the trade group said. Compared to August 2017, auto output rose 11.7 percent and sales climbed 14.8 percent.

Higher domestic demand should offset lower exports, the group said.

Brazil was one of the world's five biggest auto markets until a recent downturn and it remains a major base of operations for Fiat Chrysler Automobiles NV, Volkswagen AG, General Motors Co and Ford Motor Co. (Reporting by Flavia Bohone; Writing by Alexandra Alper Editing by Chizu Nomiyama and Richard Chang)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below