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LatinNews Daily - 08 March 2021

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In brief: Unclear outlook for vehicle production in Brazil

* Brazil’s national association of automobile manufacturers (Anfavea) has released its latest performance results, which show that vehicle production totalled 197,000 units in February, down 1.3% on January and 3.5% below February 2020 production levels. “Despite all the logistical efforts made by auto-makers, the production of vehicles has not yet returned to pre-[coronavirus] pandemic levels,” the Anfavea notes. It adds, however, that “Worse than the production bottlenecks was the cooling of the recovery in the domestic market.” Domestic sales in February were down 2.2% on January and 16.7% year-on-year. Within this, the lorry sector saw a strong performance however, with year-on-year production and sales growing 29.3% and 21.4%, respectively. Citing the coronavirus health crisis, the accompanying economic crisis, and the “structural fragility of the business environment” in Brazil, Anfavea president Luiz Carlos Moraes warned that “All this generates an absolutely unclear outlook for companies’ strategic planning, and this is true for all sectors of the economy.”