Fiat Faces Brazil Challenge as Hyundai Threatens Profit: Cars
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Fiat SpA and Volkswagen AG have dominated Brazilian auto sales for years, holding the top two spots. Now, General Motors Co. and Asian rivals are gaining share in a market the European carmakers had been counting on to offset weak demand in their home region.
Brazilian auto production capacity will jump 50 percent by 2014 as South Korea’s Hyundai Motor Co. and other carmakers ramp up new factories, according to Brazilian supplier organization Sindipecas. The added potential output, which comes as sales growth slows, will put pressure on VW and Fiat profit margins, Barclays predicts.