UPDATE 3-Brazil Oct auto output jumps 5.5 pct on exports

* Production jumps 5.5 pct in Oct after slump in Sept

* Exports jump 11.6 pct, offsetting domestic sales decline

* Fiat leads Brazil sales, followed by Volkswagen
(Adds context, comment in paragraphs 4-5)

SAO PAULO, Nov 8 (BestGrowthStock) – Automobile production in
Brazil rose sharply in October, rebounding from a slump the
previous month, as a surge in exports helped offset slower
domestic sales, industry figures showed on Monday.

Output in Latin America’s largest economy rose 5.5 percent
month-on-month in October to 321,800 new cars and trucks, after
a 9.1 percent tumble in September, national automakers’
association Anfavea said. Production rose 1.5 percent from a
year earlier.

Exports volumes surged 11.6 percent in October from
September and jumped 50.3 percent from a year earlier to $1.32
billion, helping offset the softer domestic market.

The trend in production is unlikely to hold for the coming
months as vehicle inventories in the domestic market remain at
their highest level since 2007. A 7 percent gain in the
nation’s currency threatens to make Brazilian cars more
expensive in overseas markets.

“Accordingly, the perspective of continued high inventories
… reduces the probability of a significant growth in
production in the sector over the coming months,” Credit Suisse
economists led by Nilson Teixeira wrote in a report.

Sales of new cars and light trucks fell 1.3 percent last
month from September to 303,200 vehicles, Anfavea said.

Brazil is a major market for global automakers such as
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 held the top spot in Brazil’s market with sales of
62,946 new cars and light trucks in October, down 5.8 percent
from September, while VW sales firmed 2.2 percent to 61,351

GM sold 55,910 vehicles, down 5.2 percent month-on-month,
while Ford sold 29,474, an 8.6 percent jump from September.

Leading heavy truck sales was Sweden’s Scania AB (SCVb.ST: )
with 1,351 units, down from 1,402 in September. Rival Volvo
AB’s (VOLVb.ST: ) sales were little changed at 915 from 914,
while Daimler AG’s (DAIGn.DE: ) Mercedes-Benz sales dropped to
1,116 trucks from 1,383.
(Reporting by Alberto Alerigi; Writing by Elzio Barreto and
Guillermo Parra-Bernal, editing by Dave Zimmerman)

UPDATE 3-Brazil Oct auto output jumps 5.5 pct on exports