UPDATE 2-Brazil’s 2011 auto sales, output seen up at record

* 2011 sales, output seen rising to new records

* Buoyant economy, available credit to stoke car market

* Vehicle production up 1.6 pct in Nov from Oct

* Sales jump 8.3 pct, helping offset decline in exports
(Rewrites, adds 2011 sales and output forecasts, comments,
Brazil credit and economic growth, byline)

By Alberto Alerigi Jr.

SAO PAULO, Dec 6 (BestGrowthStock) – Automobile production and
sales in Brazil are seen rising to all time highs in 2011,
buoyed by robust growth and plentiful credit in Latin America’s
largest economy, even as the pace slows from 2010.

Sales in Brazil, a major market for several global
automakers, are forecast to rise to a fifth consecutive record
next year, while output should grow to a second straight
record, national automakers association Anfavea said on

“The market is hot and should continue to be hot in 2011,”
said Cledorvino Belini, Anfavea president who is also chief
executive of Italian automaker Fiat SpA (FIA.MI: ) in Latin

Automakers in Brazil have benefited from rapid growth in
the economy that has increased wages and reduced unemployment.
A surge in vehicle lending has also made car purchases more
affordable for millions of Brazilians who pay loans in up to 80

Sales should rise 5.2 percent in 2011 to 3.63 million
vehicles, slower than the 9.8 percent forecast for growth in
2010. Production is seen firming 1.1 percent to 3.68 million,
less than the 14.4 percent surge this year.

The country’s automobile market is dominated by Fiat,
Germany’s Volkswagen AG (VOWG.DE: ) and U.S.-based General Motors
Co (GM.N: ) and Ford Motor Co (F.N: ). South Korean, Chinese and
Japanese companies have unveiled millions of investments in new
factories in Brazil, looking to gain a piece of the booming


Automobile production in Brazil rose for a second straight
month in November, buoyed by strong domestic demand that helped
offset weaker exports.

Companies that normally have to idle factories at the end
of the year and send thousands of workers on mandatory paid
leave because of a slowdown in production are keeping output at
full steam to replenish inventory, Belini said.

“Some automakers will have no shutdowns in order to balance
their stocks,” he added.

Output rose 1.6 percent in November from October
(BRAOPM=ECI: ) to 321,100 new cars and light trucks, Anfavea
said. The gains built on the 5.5 percent rise in production in

Sales (BRASLM=ECI: ) surged 8.3 percent month-on-month in
November to 328,500 units.

The jump in domestic sales helped offset weaker global
demand for Brazilian exports, which dropped 9.8 percent in
November from October to 68,065 vehicles. Export volume was
down 6.5 percent over the same period to $1.22 billion, Anfavea

Fiat held the top spot in Brazil’s market with sales of
70,095 new cars and light trucks in November, up 11.4 percent
from October, while VW sales climbed 10.4 percent to 67,745

GM sold 59,343 vehicles, rising 6.1 percent month-on-month,
while Ford sold 31,462, a 6.7 percent increase from October.
(Writing by Elzio Barreto, editing by Derek Caney, Dave

UPDATE 2-Brazil’s 2011 auto sales, output seen up at record