10/27/2008 08h23

Still-heated markets keep Brazil’s rhythm

Gazeta Mercantil – 10/27/2008

The production adjustment announced by Scania to meet the world demand that reduced by 29% the orders from January to September in comparison to the same period of 2007 will not reach the company's operations in Brazil. According to the press services of the maker in Brazil, the most expressive fall in Scania's orders is in Western Europe, where the volume of orders fell 51% from January to September over the nine months of 2007. This market is met by Scania plants in Sweden, France and the Netherlands. In the Latin America region, where Brazil is inserted, Scania had an increase of 29% in the orders in this year's nine months. In the São Bernardo do Campo (SP) plant, from Scania's total production, 35% remains in Brazil, 15% goes to Latin America countries, and 50% goes to other markets, mainly Asia, where orders grew 3% from January to September and the Middle East, which had a 60% high in orders in the period. In Central and Eastern Europe, where we find Russia, Poland, and Romania, orders fell 34%. These countries are also supplied by the production of São Bernardo's plant. In Brazil Scania sold 5,486 heavy trucks in the nine months of this year, a volume which is 19% bigger than the same period of 2007, according to the National Association of Automotive Vehicles Producers (Anfavea) This market grew 48% in the period. Volvo do Brasil, which announced that it would have to create one more shift to face the increase in demand at the end of last August, informed that the situation will be kept and nothing should change until the end of the year, when it gives its traditional Christmas and New Year's blanket vacations. Since September, Volvo's truck productions in its plant of Curitiba went from 56 to 77 units per day and 200 new employees were hired to strengthen the production of the models of the "F" line. In Brazil, Volvo still keeps three shifts in its plant of blocks for engines and three shifts in the cabin units, informed the company's press service.