Grow in Automotive Electronic Systems
Grow in Automotive Electronic Systems
PCB News PCBA News
By CARZunlimited
BOSTON-The Strategy Analytics report, “Brazil: A Safe Bet ForAutomotive Electronics In Tough Times,” reveals an 11.5 percentgrowth in demand for automotive electronics from the Brazilian autoindustry. Car production is expected to grow in Brazil, comparedwith sharp downturns in the mature markets.
Brazil’s auto industry has received the benefits of a growingeconomy, consumer access to better credit facilities and a stablegovernment. Major investments have been planned by global carmakers and component suppliers to raise local production capacityin order to meet this growing market.
However, the Brazilian auto industry is now facing uncertainties.The currency flight to the US dollar has made imports of criticalcomponents more expensive. The credit crunch has made industrialinvestment and consumer credit more difficult to obtain. Thedeclining global economy will have an adverse impact on car sales.As a result, certain investment projects have been postponed. SomeOEMs have started to impose staff cutbacks and enforced leave.
According to the author of this report, Kevin Mak, Industry Analystof the Strategy Analytics Automotive Electronics Service, “Mixedsignals from the local market make it a hard call, but Brazil stillhas the potential to ride out this storm. Cutbacks in theautomotive sector have been announced later than in other markets.The strong dollar will be the stimulus for increasing localcomponent production, enhanced by a fledgling semiconductorindustry. Production of light trucks and low-cost cars will ensurecontinuing growth for Brazilian car manufacturers.”
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