Two French Car Makers Lower Brazil National Sales Estimates

Peugeot and Renault lowered their national car sales estimates for Brazil at the International Autoshow in Sao Paulo on Monday.
Peugeot President Laurent Taste said 2008 should end with national auto makers selling 2.7 million cars compared with earlier estimates of 2.9 million.
Renault President Jerome Stoll said he expects similar numbers from Brazil’s national auto market and revised figures to 2.75 million units compared with in-house figures nearing 3 million in May.
In the January-September period, car makers sold 2.21 million units, up 27% from a year earlier, according to the Brazilian Motor Vehicle Manufacturers Association, or Anfavea.
“We expect sales to be stable next year, which isn’t a bad thing considering the [financial] crisis,” Taste said referring to the global credit crunch and the likelihood of an economic slowdown in Brazil.
Stoll and Taste said costly credit would also impact the sector.
Banks have raised interest rates sales on new and used cars in response to a general risk aversion among lenders.
“At the beginning of the year we financed up to 30% of new car sales and now it’s gone to 40% and could even reach 60%,” Taste said.
Stoll said tighter credit in Brazil could impact the local auto market, which has been a key driver of economic growth in Brazil over the last several years.