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And Latin America

June 5, 2018

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In Argentina cars usually have a lifespan much greater than that observed in the first world economies, such is so, I have a friend who owns a Fiat 600 of the year 1969, which still works, and quite well. The truth is that after two years of beginning of the subprime crisis, the automotive Americans are worried about the situation that exists since the demand for automobiles, since consumers have decided to extend the use of their vehicles time (although not at the end of cases such as those observed in Argentina). For worse, this situation promises to extend in time for a few more years until American families recover part of the wealth lost during the crisis, wealth that has actually been transferred from hands of these families towards the shareholders and directors of financial institutions, so that the renovation of the American vehicle fleet will demand more years than usual. For this reason, the orientation of the sector begins to focus on those markets with great potential in the not too distant future. And Latin America as potential market (and in particular, the Brazilian market) appears between these markets.

This situation is a little rare, if you will. The long decades in which the region has been immersed poor little consumerist, has made her a region which had generated a certain contempt by large multinational companies. The beginning of the 90 generated a small boom in consumption that struck a little in the region, although this appeal was waning with time to disappear towards the end of this decade. But now, the recovery of the path of growth in Latin America has strong fundamentals and it has become promoter of regional development with concrete impact on the improvement of the social situation of the population. Improvement that started recently, has been interrupted by the crisis, but that without a doubt, will resume shortly.