UPDATE 2-Carmakers apt to spend $11.2 bln in Brazil boom

* Investments may reach $11.2 bln through 2011

* Car industry helped propel economic growth in 2009
(Adds sales numbers)

SAO PAULO April 30 (BestGrowthStock) – Global automakers will
likely invest up to $11.2 billion in Brazil over the next two
years, taking advantage of pent-up demand for vehicles in the
largest Latin American economy, the president of industry group
Anfavea, Cledorvino Bellini, said on Friday.

The investment comes as April car sales for Brazil are
expected to reach a record for the month, despite retreating 13
percent from the all-time high in March, underscoring the
importance of domestic demand to Brazil’s economic rebound.

Through Thursday, sales of new vehicles in Brazil totaled
261,063, down from 299,368 through the same period in the
previous month, Anfavea said on Friday. The April figures are a
20.3 percent rise over the year-ago period.

Bellini, who is the head of Fiat’s (FIA.MI: ) Latin American
operations, said at an event in Sao Paulo that expansion plans
follow an “extremely positive 2009 in Brazil.”

Brazil’s economy is forecast to grow nearly 6 percent in
2010, according to central bank estimates, fueled by an
increase in credit to consumers and businesses, low
unemployment and rising household income.

Automobile sales in the country rose 11.4 percent in 2009
from the previous year to a record 3.14 million units, in part
because of easier credit and government tax breaks.

“The country was the last to enter the crisis and one of
the first to emerge from it,” Bellini said.

Brazil, the fifth-biggest market for the industry, is a
major market for global automakers such as Italy’s Fiat,
Germany’s Volkswagen AG (VOWG.DE: ), U.S.-based General Motors
Company [GM.UL] and Ford Motor Co (F.N: ).

Investment Research

(Reporting by Alberto Alerigi Jr.; Writing by Luciana Lopez)

UPDATE 2-Carmakers apt to spend $11.2 bln in Brazil boom