BRAZIL TO BE WORLD'S THIRD LARGEST VEHICLES MARKET
Brazil will be producing 2.8 mln
vehicles a year by the end of this century and it could become
the world's third largest national market for motor vehicles,
according to a report by the Economist magazine's Economist
Intelligence Unit.
    The report stated that Brazil already offered a huge
national market for the vehicle producers and offered potential
access to other large Latin American markets. "Development of a
fully integrated motor industry in Brazil may not be far away,"
it said. Volkswagen, General Motors, Ford and Fiat are all
operating modern car plants in Brazil now, it added. 
 "Multinationals will want to consolidate and then expand in
Brazil because of the enormous sourcing opportunities that such
a relatively low cost producer offers," the report said.
    It pointed out, however, that corporate life in Brazil was
complicated by its economic situation. "At present Brazil is
suffering from a debt crisis, rampant inflation and exchange
rate fluctuations," the Intelligence Unit said.
    "In spite of this, Brazil's resilience is maintained by the
potential created by its still under-exploited natural and
human resources. The reward for holding out in the present
economic climate could be huge," it added.
 REUTER
