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4 10.1 to 10.6.2018 Disclousure Anfavea figures S ão Paulo - In September, the Brazilian vehicle production surpassed 2 million units in the year, one month earlier compared to 2017 when this volume was reached in October. According to data released by Anfavea on Thursday, 4th, 2.2 million units have left the assembly lines from January to September, 10.5% higher than the same period last year. Although positive, in the comparison of accumulated figures, the pace of the manufacturers’ lines in September was 23.5% lower than in August, explained due to an also lower number of working days - 19 against 23 - and 6.3% less than in September 2017. For Anfavea’s president, Antonio Megale, the main export markets negative performance (Argentina and Mexico) reduced the orders and, consequently, vehicle production. “Companies are adjusting production to adapt to the new volumes. Unfortunately we can’t converge the good moment of the Brazilian market with the main market partners: Argentina and Mexico have decreased”. According to him, some of the volumes are being absorbed by the Brazilian market itself, at an increasing rate, and another part directed to other countries - Megale mentioned Chile and Colombia as these partners. It is not enough, however, to compensate the loss: Argentina alone accounts for about 70% of the Brazilian vehicle shipments: “The industry continues to search for new markets and it is expected that with the new president, the Mexican market recovers itself. But in the meantime, adjustments need to be made on the lines”. The situation in exports did not affect, at least for now, the employment level in the industry, which remained stable from August to September. Megale said that measures taken by companies include collective vacation, licenses and, in some cases, layoffs. Production surpasses 2 million units André Barros | andrebarros@autodata.com.br