Auto Makers Stand by Brazil

Despite doom and gloom for emerging markets and the auto industry, car makers are reportedly sticking with Brazil. Both General Motors and Peugeot are keeping in place longer term Brazil investment plans, Dow Jones reports from the International Auto Show in Sao Paulo. The newswire notes a 4 year $1.5bn-$2.5bn commitment from GM, which says it will not downsize in Brazil. It also reports that Ford will invest BRL3.4bn in South America in the 2007-2011 period, of which 85% will be directed to Brazil. And the subsidiary Peugeot in Brazil will maintain its planned BRL200m investment for 2008, the local president says, according to Dow Jones. The newswire reports Peugeot has an investment budget of BRL500m to use in Brazil for 2008-2010.