According to General Motors president for South America, Jaime Ardila, the Brazil auto market in 2012 will suffer from the impact of the global financial crisis.

The executive estimates sales of 3.65 million new vehicles in Brazil in 2011, a 5% growth over 2010, but expects a mere 1% growth for 2012.

“The Brazilian market is already at 3.7 million (vehicles) and if we stay close to that in 2012 it is already an excellent achievement considering the turbulent scenario. Unlike the 2008/09 crisis, the government don’t have many more tools and margin for economic stimulus,” he said. “Brazil will be impacted by this crisis because it depends on international lines of credit, as domestic savings are not enough. Today, Brazil’s government is fiscally more limited than in 2009 because inflation is higher, which makes it more difficult to increase public spending.” 

Besides the lower growth estimates for Brazil, Ardila said he expects flat vehicle sales in Argentina, which should end this year at 850,000 units sold due to uncertainties created by the financial crisis.

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