Car makers cut shutdowns
Folha de S. Paulo - 10/30/2007
Yesterday, Thomas Schmall, Volkswagen's CEO, announced that the companie's investments for the period between 2007 and 2011 have increased 35% in relation to what was initially planned, reaching R$ 3.2 billion (US$ 1.75 billion). The shutdowns will be shorter than the 2006's in some of its plants. At General Motors, the end-of-year holidays, which lasted two weeks last year, will be cancelled in some units. At Fiat, there were meetings during the weekend to discuss the matter. "The stocks are very low", says Ray Young, GM's CEO. With the unexpected increase on sales superior to 27% on passenger cars and light commercial vehicles in 2007, the industry is seeking to increase productivity in all their areas, before investing in new plants. Volkswagen, however, is discussing three possibilities with its head office: increase of capacity in the existing plants, partnership with some competitor with idle capacity, or a new plant. After the good results of 2007, motivated mainly by the increase of consumer credit, the car makers also have positive perspective for 2008. According to most of the makers which participated of the workshop of the AutoData publishing company yesterday, the growth of sales will be around 15%, reaching 2.7 million passenger cars and light commercial vehicles. The production, on its turn, will increase around 10%, surpassing 3 million units and exports may fall for all makers, increasing from 700 thousand to 650 thousand units.