Carmakers accelerate into Brazil

Several Chinese carmakers, a Japanese carmaker and a South Korean carmaker are opening facilities in Brazil to expand into the South American market. The growing middle class is one reason for higher car purchases, and available consumer credit is another.

Some observers worry that consumer spending will plummet as interest rates increase, inflation advances and rising household debt slows car purchases. In fact, the economic situation is unsettled, yet global automakers are betting on the profit potential of long-term consumption patterns as they build factories and extend distribution channels.

Among the market leaders in Brazil are Fiat, Ford, GM and VW. Tomorrow, however, Nissan, Chery, Hyundai and other automakers expect to see their vehicles in showrooms and roads all over Brazil and beyond.