UPDATE 1-Brazil May car output up sharply on export boom

* Export surge in May helps offset domestic sales decline

* Auto exports up 27.2 pct vs April, jump 77.5 pct vs 2009

* Fiat leads Brazil auto sales, followed by VW
(Adds export surge, breakdown of sales by automaker)

SAO PAULO, June 8 (BestGrowthStock) – Automobile output in Brazil
rose sharply in May as carmakers lifted production to meet
rising demand in export markets that helped offset slower
domestic sales, the national automakers’ association Anfavea
said on Tuesday.

Carmakers produced 309,600 units last month, up 6.6 percent
from April and 14.9 percent higher than May 2009, the
association said. The output figures underscored expectations
that Brazil’s economy may be overheating, following
better-than-expected first-quarter growth figures unveiled on
Tuesday. [ID:nN08215489]

Exports surged 27.2 percent month-on-month and were up a
hefty 77.5 percent from May 2009 to $1.18 billion, underscoring
a nascent rebound in the global economy that has revived demand
for cars.

The jump in exports helped offset slower demand in the
domestic market, where sales dropped for a second straight
month after a boom in the first quarter because of government
tax breaks. Vehicle sales fell 9.6 percent from April to
251,100 units, but were up 1.7 percent from May 2009.

Brazil, Latin America’s largest economy, is a major market
for Italy’s Fiat SpA (FIA.MI: ), Germany’s Volkswagen AG
(VOWG.DE: ) and U.S.-based General Motors Co [GM.UL] and Ford
Motor Co (F.N: ).

Fiat remained the market leader in Brazil in May, selling
54,934 new cars and light trucks, down 6.6 percent from the
previous month, while VW sales dipped 1.9 percent
month-on-month to 54,605 units.

GM’s sales were down 7.3 percent to 46,526 units, while
Ford sold 19,984 units, a 27.1 percent slump from April.

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(Reporting by Alberto Alerigi Jr; Writing by Elzio Barreto,
editing by Dave Zimmerman)

UPDATE 1-Brazil May car output up sharply on export boom