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The Effects of the Crisis on the Auto Assemblers Investment Strategies in Brazil and China

18th GERPISA International Colloquium

Enéas G. de Carvalho*

Lourenço Faria**

Paulo Morceiro**

Michael França***
1. Introduction

The automobile sector was one of the most affected by the current economic and financial international crisis (OCDE, 2009a e 2009b). Typically, the auto sector presents a cyclic behavior (OCDE, 1996 e 2009b), however it has been particularly affected by the current recession. This sector tends to be strongly affected by income, employment and also credit oscillations which normally come with the economic cycles. In this recent crisis, the particularly strong credit crush1 and the fear of a long (and deep) recession should be also taken into account, as additional factors, to explain such an intense and abrupt slump for the vehicle demand in many countries (OCDE, 2009b).

Actually, it can be seen a substantial decrease in the global production of the automobile industry in 2009 (56,9 million light vehicles), concerning the 66,0 million produced in 2008 – in spite of the strong increase in the Chinese production and more moderate, but also expressive increase in the Indian case (Autofcts, 2010)2. lire la suite