Alberto Alerigi and Brad Haynes – Reuters, 07/05/2012
SAO PAULO, July 5 (Reuters) – Automobile production in Brazil slipped in June despite a sharp jump in sales, as carmakers took advantage of tax breaks to draw down inventories but remained cautious about restarting idle production lines.
Auto output dipped 2.6 percent while sales jumped 22.9 percent in June from May, automakers association Anfavea said on Thursday.
In the first half of the year, production of new cars, trucks and buses fell more than 9 percent from a year earlier, as rising loan defaults and tighter lending choked demand in the Brazilian market that was booming just a year ago.
[...] measures have seen results; car sales have jumped markedly after a similar tax cut, although auto output itself has not rebounded. However, the results of similar stimuli, such as the monumental new agricultural loan program [...]