GM and Renault Doing Well in Brazil. Car Industry Hits Record Sales

General Motors in Brazil General Motors Brazil intends to create a second shift and to hire 44 new employees for their Industrial and Commercial Automotive Complex in the city of Mogi das Cruzes, in the interior of the state of São Paulo.

"The Brazilian car market is very heated, causing us to expand our activities in the country," stated José Carlos Pinheiro Neto, vice president at GM Brazil, in a company press statement.

Expansion of activities should take place in the first week of April and should cover the metal part production area, which currently has 171 employees.

In total, the Mogi das Cruzes complex employs 485 people, among outsourced and hired employees. Apart from a metal part production unit, the factory also produces car parts. The unit in Mogi was inaugurated in 1999.

Brazil's National Association of Vehicle Manufacturers (Anfavea) announced last month that vehicle sales in 2007 – including light vehicles, trucks and buses, assembled and disassembled – totaled 2.46 million units, including national and imported vehicles.

The performance is the highest in the history of the country, according to the Anfavea, exceeding by 27.8% the figure for 2006. Participation of imported vehicles reached 10.9% of the total.

Regarding production, a total of 2.97 million units were made last year, 13.9% more than in 2006 and also the largest result in history for the sector.

Renault Brazil had announced in January that it hit record highs in sales, production and exports in 2007. According to the press office at the company, a total of 73,875 vehicles were sold in Brazil, an increase of 43% compared with 2006, production reached 109,200 units, nearly 60% more, and 37,477 units were exported, an increase of 119%.

The company ascribes the performance in the country to the recent launch of new models, such as the Logan, the new Mégane and the Mégane Grand Tour. Worldwide, according to the press office, the Renault Group commercialized almost 2.5 million units in 2007, a 2.2% increase over the previous year. The company holds a 3.6% share of the global vehicle market.

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