Ford to raise prices in 2004
Reuters announced that Ford is going to increase car prices in
Brazil by 5% next year in order to meet the high labour costs and expensive car parts.
Brazil's auto industry association Anfavea expects car sales to decrease by 7% in 2003 compared to 2002. The decline seen in car sales is attributed to the high interest rates and upward trend of unemployment.
Moreover, automakers do not increase their prices until next year or dismiss workers until February 2004, according to temporary tax relief that was given by
Brazil's government to the
automotive sector. Government took this tax relief decision to animate the
automotive sector.
Ford's officials reported that they will increase the prices approximately by 5% in January 2004. Other car makers in
Brazil are also planning to raise prices in 2004.
According to Reuters, Ford has increased its market share during the economic downturn in opposition to other car companies in
Brazil.
Ford expects to obtain profit and to increase its market share between 1% to 13% in 2004. Furthermore, company aims to add another shift at its Camacari plant in Bahia by mid 2004 to meet the growing demand in
Brazil and overseas.
Ford forecasts Brazilian car sales for all companies to increase by 7% to 14% and also expects its exports to rise up to 25% in 2004.