A recent program by the Luiz Inácio Lula da Silva administration to offer discounts on cars has had an important side effect: free publicity for the government on network television.
The program was launched on June 6 with the publication of a provisional decree granting BRL 500 million (USD 104 million) in tax credits to the auto industry. In return, manufacturers must offer discounts from BRL 2,000 to BRL 8,000 on passenger cars, with cheaper and more efficient models receiving larger discounts. The program also included an additional BRL 1 billion for buses and trucks.
The Finance Ministry told The Brazilian Report that the program would be paid for by increasing taxes on diesel and biodiesel.
The initiative was a huge success. By June 21, the passenger car program had already spent 80 percent of its allotted budget. The government also postponed the deadline granting exclusivity to individual consumers, after which businesses such as rental car companies will be allowed to purchase discounted cars if there are any left.
The Brazilian Report identified recent passenger car commercials on network or cable TV mentioning the government’s...
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