Happy Friday! Today, automakers see Brazil car sales go way down. Petrobras celebrates record profits. Bolsonaro banging the electoral fraud drum once more.
Car sales in Brazil have plummeted this year
Data from Oikonomia, a consultancy focused on the automotive industry, shows that car sales in Brazil were down 23 percent in the first four months of 2022 when compared to the same period last year. In order to get back to 2021 levels — which were already low to begin with — sales would need to go up 43 percent from the January-April monthly average, which no one expects to happen.
Why it matters. While part of the blame lies with the semiconductor shortage, the country’s current economic situation has caused many Brazilians to avoid buying a new car.
Interests. An entry-level model can cost at least 50 times the minimum wage. With benchmark interest rates rising fast (from 2 to 12.75 percent since March 2021), millions are now finding it impossible to take out a loan for a new car.
- In April, the lowest rate mapped by the Central Bank was 15.48 percent a year.
Inflation. Automotive inflation – or rather, the inflation in items involved in the...