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Brazil - New Cars 0076 - 0358 - 2013

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MarketLine Industry Profile

New Cars in Brazil April 2014

Reference Code: 0076-0358

Publication Date: April 2014

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Brazil - New Cars 0076 - 0358 - 2013


EXECUTIVE SUMMARY

Market value The Brazilian new cars market grew by 0.4% in 2013 to reach a value of $77.5 billion.

Market value forecast In 2018, the Brazilian new cars market is forecast to have a value of $109.2 billion, an increase of 40.9% since 2013.

Market volume The Brazilian new cars market shrank by 3.1% in 2013 to reach a volume of 2,763.7 thousand new cars sold.

Market volume forecast In 2018, the Brazilian new cars market is forecast to have a volume of 3,802.9 thousand new cars s old, an increase of

37.6% since 2013.

Geography segmentation Brazil accounts for 20% of the Americas new cars market value.

Market share Fiat S.p.A. is the leading player in the Brazilian new cars market, generating a 21.3% share of the market's volume.

Market rivalry In 2013 market value increased by 0.4%. Although the market is expanding, the stunted growth will do little to ameliorate

rivalry as players are only competing for a modicum of extra revenue.

Brazil - New Cars 0076 - 0358 - 2013


TABLE OF CONTENTS

Executive Summary..........................................................................................................................................................................2

Market value ..................................................................................................................................................................................2

Market value forecast...................................................................................................................................................................2

Market volume...............................................................................................................................................................................2

Market volume forecast ...............................................................................................................................................................2

Geography segmentation ............................................................................................................................................................2

Market share..................................................................................................................................................................................2

Market rivalry .................................................................................................................................................................................2

Market Overview ...............................................................................................................................................................................7

Market definition............................................................................................................................................................................7

Market analysis .............................................................................................................................................................................7

Market Data........................................................................................................................................................................................8

Market value ..................................................................................................................................................................................8

Market volume...............................................................................................................................................................................9

Market Segmentation .....................................................................................................................................................................10

Geography segmentation ..........................................................................................................................................................10

Market share................................................................................................................................................................................11

Market Outlook ................................................................................................................................................................................12

Market value forecast.................................................................................................................................................................12

Market volume forecast .............................................................................................................................................................13

Five Forces Analysis ......................................................................................................................................................................14

Summary ......................................................................................................................................................................................14

Buyer power.................................................................................................................................................................................15

Supplier power ............................................................................................................................................................................16

New entrants ...............................................................................................................................................................................17

Threat of substitutes...................................................................................................................................................................18

Degree of rivalry..........................................................................................................................................................................19

Leading Companies........................................................................................................................................................................20

Brazil - New Cars 0076 - 0358 - 2013


Fiat S.p.A. ....................................................................................................................................................................................20

Ford Motor Company .................................................................................................................................................................24

General Motors Company .........................................................................................................................................................27

Volkswagen AG...........................................................................................................................................................................30

Macroeconomic Indicators.............................................................................................................................................................33

Country Data ...............................................................................................................................................................................33

Appendix...........................................................................................................................................................................................35

Methodology ................................................................................................................................................................................35

Industry associations..................................................................................................................................................................36

Related MarketLine research....................................................................................................................................................36

Brazil - New Cars 0076 - 0358 - 2013


LIST OF TABLES

Table 1: Brazil new cars market value: $ billion, 2009–13 .........................................................................................................8

Table 2: Brazil new cars market volume: thousand new cars sold, 2009–13 .........................................................................9

Table 3: Brazil new cars market geography segmentation: $ billion, 2013 ...........................................................................10

Table 4: Brazil new cars market share: % share, by volume, 2013........................................................................................11

Table 5: Brazil new cars market value forecast: $ billion, 2013–18........................................................................................12

Table 6: Brazil new cars market volume forecast: thousand new cars sold, 2013–18 ........................................................13

Table 7: Fiat S.p.A.: key facts .......................................................................................................................................................20

Table 8: Fiat S.p.A.: key financials ($).........................................................................................................................................21

Table 9: Fiat S.p.A.: key financials (€).........................................................................................................................................21

Table 10: Fiat S.p.A.: key financial ratios....................................................................................................................................22

Table 11: Ford Motor Company: key facts ..................................................................................................................................24

Table 12: Ford Motor Company: key financials ($) ...................................................................................................................25

Table 13: Ford Motor Company: key financial ratios.................................................................................................................25

Table 14: General Motors Company: key facts ..........................................................................................................................27

Table 15: General Motors Company: key financials ($) ...........................................................................................................28

Table 16: General Motors Company: key financial ratios.........................................................................................................28

Table 17: Volkswagen AG: key facts ...........................................................................................................................................30

Table 18: Volkswagen AG: key financials ($).............................................................................................................................31

Table 19: Volkswagen AG: key financials (€).............................................................................................................................31

Table 20: Volkswagen AG: key financial ratios ..........................................................................................................................31

Table 21: Brazil size of population (million), 2009–13 ..............................................................................................................33

Table 22: Brazil gdp (constant 2000 prices, $ billion), 2009–13 .............................................................................................33

Table 23: Brazil gdp (current prices, $ billion), 2009–13 ..........................................................................................................33

Table 24: Brazil inflation, 2009–13...............................................................................................................................................34

Table 25: Brazil consumer price index (absolute), 2009–13....................................................................................................34

Table 26: Brazil exchange rate, 2009–13 ...................................................................................................................................34

Brazil - New Cars 0076 - 0358 - 2013


LIST OF FIGURES

Figure 1: Brazil new cars market value: $ billion, 2009–13........................................................................................................8

Figure 2: Brazil new cars market volume: thousand new cars sold, 2009–13 ........................................................................9

Figure 3: Brazil new cars market geography segmentation: % share, by value, 2013........................................................10

Figure 4: Brazil new cars market share: % share, by volume, 2013 ......................................................................................11

Figure 5: Brazil new cars market value forecast: $ billion, 2013–18 ......................................................................................12

Figure 6: Brazil new cars market volume forecast: thousand new cars sold, 2013–18.......................................................13

Figure 7: Forces driving competition in the new cars market in Brazil, 2013 ........................................................................14

Figure 8: Drivers of buyer power in the new cars market in Brazil, 2013 ..............................................................................15

Figure 9: Drivers of supplier power in the new cars market in Brazil, 2013 ..........................................................................16

Figure 10: Factors influencing the likelihood of new entrants in the new cars market in Brazil, 2013..............................17

Figure 11: Factors influencing the threat of substitutes in the new cars market in Brazil, 2013 ........................................18

Figure 12: Drivers of degree of rivalry in the new cars market in Brazil, 2013 .....................................................................19

Figure 13: Fiat S.p.A.: revenues & profitability...........................................................................................................................22

Figure 14: Fiat S.p.A.: assets & liabilities....................................................................................................................................23

Figure 15: Ford Motor Company: revenues & profitability........................................................................................................26

Figure 16: Ford Motor Company: assets & liabilities.................................................................................................................26

Figure 17: General Motors Company: revenues & profitability................................................................................................28

Figure 18: General Motors Company: assets & liabilities.........................................................................................................29

Figure 19: Volkswagen AG: revenues & profitability .................................................................................................................32

Figure 20: Volkswagen AG: assets & liabilities ..........................................................................................................................32

Brazil - New Cars 0076 - 0358 - 2013


MARKET OVERVIEW

Market definition The new cars market consists of the initial retail sale/registration of new passenger cars. Passenger cars include

saloons, hatchbacks, SUVs, 4x4s and other related vehicles. The market value is calculated at retail selling price (RSP)

and the market volume is given in terms of units sold. Market shares consist of motor manufacturing groups as opposed

to their individual brands, i.e. for the Volkswagen Group this includes all of its brands such as Volkswagen, Audi, Skoda,

Seat etc. Any currency conversions used in this report have been calculated at constant 2013 annual average exchange

rates.

For the purposes of this report, North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,

Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, Ukraine, and the United

Kingdom.

Asia-Pacific comprises Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines,

Singapore, South Korea, Taiwan, and Thailand.

MEA comprises Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.

Market analysis The Brazilian new cars market grew strongly in value terms in the period 2009-2013, and showed a moderate growth

rate in volume terms. Over the forecast period 2013-20018 the market is expected to show strong growth in both value

and volume terms.

The Brazilian new cars market had total revenues of $77.5bn in 2013, representing a compound annual growth rate

(CAGR) of 6.3% between 2009 and 2013. In comparison, the US and Canadian markets grew with CAGRs of 11.8% and

2.2% respectively, over the same period, to reach respective values of $237.1bn and $20.3bn in 2013.

Market volume increased with a CAGR of 2.8% between 2009 and 2013, to reach a total of 2,763.7 thousand new cars

sold in 2013. The market's volume is expected to rise to 3,802.9 thousand new cars sold by the end of 2018,

representing a CAGR of 6.6% for the 2013-2018 period.

Brazil - New Cars 0076 - 0358 - 2013


MARKET DATA

Market value The Brazilian new cars market grew by 0.4% in 2013 to reach a value of $77.5 billion.

The compound annual growth rate of the market in the period 2009–13 was 6.3%.

Table 1: Brazil new cars market value: $ billion, 2009–13

Year $ billion BRL billion € billion % Growth

2009 60.8 131.2 45.7

2010 66.5 143.5 50.0 9.4%

2011 69.2 149.2 52.0 4.0%

2012 77.2 166.5 58.0 11.6%

2013 77.5 167.2 58.3 0.4%

CAGR: 2009–13 6.3%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Brazil new cars market value: $ billion, 2009–13


Brazil - New Cars 0076 - 0358 - 2013


Market volume The Brazilian new cars market shrank by 3.1% in 2013 to reach a volume of 2,763.7 thousand new cars sold.

The compound annual growth rate of the market in the period 2009–13 was 2.8%.

Table 2: Brazil new cars market volume: thousand new cars sold, 2009 –13

Year thousand new cars sold % Growth

2009 2,474.8

2010 2,644.7 6.9%

2011 2,647.3 0.1%

2012 2,851.5 7.7%

2013 2,763.7 (3.1%)

CAGR: 2009–13 2.8%


Figure 2: Brazil new cars market volume: thousand new cars sold, 2009 –13


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MARKET SEGMENTATION

Geography segmentation Brazil accounts for 20% of the Americas new cars market value.

The United States accounts for a further 61.2% of the Americas market.

Table 3: Brazil new cars market geography segmentation: $ billion, 2013

Geography 2013 %

United States 237.1 61.2

Brazil 77.5 20.0

Canada 20.3 5.2

Mexico 14.1 3.6

Rest of the Americas 38.7 10.0

Total 387.7 100%


Figure 3: Brazil new cars market geography segmentation: % share, by value, 2013


Brazil - New Cars 0076 - 0358 - 2013


Market share Fiat S.p.A. is the leading player in the Brazilian new cars market, generating a 21.3% share of the market's volume.

Volkswagen AG accounts for a further 18.8% of the market.

Table 4: Brazil new cars market share: % share, by volume, 2013

Company % Share

Fiat S.p.A. 21.3%

Volkswagen AG 18.8%

General Motors Company 18.2%

Ford Motor Company 9.4%

Other 32.3%

Total 100%


Figure 4: Brazil new cars market share: % share, by volume, 2013


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MARKET OUTLOOK

Market value forecast In 2018, the Brazilian new cars market is forecast to have a value of $109.2 billion, an increase of 40.9% since 2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 7.1%.

Table 5: Brazil new cars market value forecast: $ billion, 2013–18

Year $ billion BRL billion € billion % Growth

2013 77.5 167.2 58.3 0.4%

2014 80.5 173.7 60.6 3.9%

2015 87.0 187.6 65.4 8.0%

2016 93.8 202.4 70.6 7.9%

2017 101.1 218.1 76.0 7.8%

2018 109.2 235.6 82.1 8.0%

CAGR: 2013–18 7.1%


Figure 5: Brazil new cars market value forecast: $ billion, 2013–18


Brazil - New Cars 0076 - 0358 - 2013


Market volume forecast In 2018, the Brazilian new cars market is forecast to have a volume of 3,802.9 thousand new cars sold, an increase of

37.6% since 2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 6.6%.

Table 6: Brazil new cars market volume forecast: thousand new cars sold, 2013–18

Year thousand new cars sold % Growth

2013 2,763.7 (3.1%)

2014 2,937.5 6.3%

2015 3,135.9 6.8%

2016 3,342.9 6.6%

2017 3,561.2 6.5%

2018 3,802.9 6.8%

CAGR: 2013–18 6.6%


Figure 6: Brazil new cars market volume forecast: thousand new cars sold, 2013–18


Brazil - New Cars 0076 - 0358 - 2013


FIVE FORCES ANALYSIS

The new cars market will be analyzed taking car manufacturers as players. The key buyers will be taken as consumers

and fleet operators, and suppliers of commodity items, such as metals as the key suppliers.

Summary

Figure 7: Forces driving competition in the new cars market in Brazil, 2013


In 2013 market value increased by 0.4%. Although the market is expanding, the stunted growth will do little to ameliorate

rivalry as players are only competing for a modicum of extra revenue.

However, rivalry within the new cars market has been intensified, as a consequence of recent economical tu rbulences

and due to presence of strong, international incumbents.

In 2012, Brazil introduced heavy automobile import tariffs, discouraging the purchase of foreign made vehicles, but

resulting in moves by multinational market players to set up manufacturing operations within the country. The new cars

market has a large number of buyers. Manufacturers have invested significantly in brand building. Whilst switching costs

are low and buyers are price-sensitive, this brand power means buyer power is weakened. Key inputs include

commodities like steel, whose price may be difficult for manufacturers to control, and other inputs such as fabricated

components and labor. Although there are high capital requirements for viable manufacturing scale, recent market

growth means incumbents may face more threat from new entrants. Substitutes such as used cars and public transport

offer a strong threat to car makers. Concentration within particular geographic regions can be quite high, due to years of

consolidation that have left relatively few major players.

Brazil - New Cars 0076 - 0358 - 2013


Buyer power

Figure 8: Drivers of buyer power in the new cars market in Brazil, 2013


The new cars market offers a great deal of choice for customers, with a variety of manufacturers making products with

high levels of differentiation. For many buyers, who are price-sensitive, switching costs are low. However, manufacturers

have invested heavily in brand building, meaning buyer power is weakened.

This market possesses a large number of vehicles being sold to an equally large number of consumers, none of whom

have a particularly large market share. This reduces buyer power. Car leasing companies offer a partial exception to this.

Through bulk purchasing and contractual arrangements, favorable prices can be obtained, along with an enhanced

degree of buyer power. Overall, buyer power in the new cars market is assessed as moderate.

Brazil - New Cars 0076 - 0358 - 2013


Supplier power

Figure 9: Drivers of supplier power in the new cars market in Brazil, 2013


Key inputs required by car manufacturers include commodity items, such as metals, as well as more differentiated input

such as fabricated components, produced by other companies rather than being manufactured in-house. There is often

little to distinguish between suppliers, with raw materials offering low differentiation. This reduces supplier power

somewhat. Despite this, the high importance of the quality of raw materials and components to the car manufacturers

(particularly when safety-critical) can enhance supplier power. Manufacturers’ margins have been affected by globally

fluctuating raw material prices, such as those of steel and aluminum, during recent years.

The upstream competitive landscape is relatively fragmented, although recent consolidation in the steel industry could

boost supplier power. Typical suppliers are likely to sell to a wide variety of manufacturing companies, with the new car

market likely contributing only a small share of total supplier revenues. This further strengthens the position of suppliers.

Overall, supplier power is moderate.

Brazil - New Cars 0076 - 0358 - 2013


New entrants

Figure 10: Factors influencing the likelihood of new entrants in the new cars market in Brazil, 2013


It is relatively difficult for new players to directly enter a particular country’s market due to the importance of brand

strength and reputation within the new cars market. Those that succeed often do so through the introduction of

successful foreign brands. Due to the high fixed costs in car design and manufacture, as well as the economies of scale

gained from mass production, new start-up companies are rare: the capital requirements for a manufacturing facility of

feasible scale are high. Unlike many other countries' new car markets, Brazil's has seen strong growth in recent years;

this makes the market an attractive prospect to new entrants. Overall, the threat of new entrants is assessed as

moderate.

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Threat of substitutes

Figure 11: Factors influencing the threat of substitutes in the new cars market in Brazil, 2013


The main substitutes threatening players in the new cars market are used cars, alternative forms of personal transport,

and public transport. Auto manufacturers totally committed to fossil fuel cars may see hybrid powered vehicles as a

threat. These are often cheaper alternatives, and offer a more environmentally fri endly option, which is generally

rewarded by governments, e.g. through lower taxes.

Public transport, and substitutes, such as cycles, can reduce the effect of volatile fuel prices for the user. However, end -

users may also find them less convenient, less reliable, and less significant as status symbols. Overall, the threat from

substitutes, particularly in countries affected by recession and with high consumer environmental awareness, is strong.

Brazil - New Cars 0076 - 0358 - 2013


Degree of rivalry

Figure 12: Drivers of degree of rivalry in the new cars market in Brazil, 2013


A relatively small number of large companies dominate the new cars market, namely Volkswagen; General Motors, Ford

and Fiat. A smaller number of players usually reduces rivalry; however, these companies' large sizes alleviate this effect.

Rivalry is reduced somewhat due to a degree of differentiation, with several different segments within the market, such

as luxury and budget. Companies utilize a high level of design and marketing to promote their product. Some companies

occupy more than one segment by utilizing different brands, for example Fiat (Fiat and Ferrari). Brazil was not as

severely affected by the economic downturn as other countries. The new cars market in Brazil has experienced strong,

growth in recent years, although this slowed to 0.4% in 2013. Given the country's reliance on road transportation,

government plans to revamp Brazil's road infrastructure could see the new car market expand further in future, easing

rivalry. High operating and exit costs in the automotive market mean that rivalry is assessed as strong overall.

Brazil - New Cars 0076 - 0358 - 2013


LEADING COMPANIES

Fiat S.p.A.

Table 7: Fiat S.p.A.: key facts

Head office: Via Nizza 250, 10126 Turin, ITA

Telephone: 39 01 1006 1111

Local office: Fiat Automóveis S.A., Rodóvia Fernão Dias, Km. 429, Betim, MG 32530-000, BRA

Telephone: 55 31 3529 2111

Fax: 55 31 3529 2711

Website: www.fiatspa.com

Financial year-end: December

Ticker: F, FIAT, Fm

Stock exchange: Borsa Italiana, Frankfurt, Paris

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Fiat is engaged in the design, production and sale of mass -market and luxury automobiles through a number of brands.

The group also manufactures automotive-related products and systems, principally powertrains, components,

metallurgical products, and production systems for the automotive sector. The group operates 158 plants globally with 44

in Italy, 48 in North America, 33 in Europe, 19 in Latin America and 14 in rest of the world. In addition, Fiat operates 77

research and development (R&D) centers, including 37 in Italy, 16 in North America, 15 in Europe, five in Latin America

and four in other regions.

The group operates through three business segments: car mass-market brands; components and production systems;

and performance and luxury brands.

Fiat's car mass-market brands segment can be further categorized into North America, Latin America, Asia, and Europe,

the Middle East and Africa (EMEA), based on the geographies and the brands offered in those geographies.

The North America division designs, develops, produces, distributes and sells automobiles under the Chrysler, Jeep,

Dodge, Ram, SRT and Fiat brand names. Fiat also offers automotive parts and accessories under the Mopar brand in

the US, Canada and Mexico.

The Latin America division manufactures and sells passenger cars and light commercial vehicles and related spare parts

under the Fiat and Fiat Professional brand names in South and Central America, excluding Mexico. The division also

provides financial services to the dealer network in Brazil and Argentina. It also provides financial services to the dealer

network and end customers of Fiat Industrial group for the sale of trucks and commercial vehicles. This division excludes

the distribution of Chrysler group brand cars in this region.

The Asia division is primarily engaged in the sale of cars, engines and transmissions and related spare parts under the

Chrysler group and Fiat brands mostly in China, Japan, Australia and India.

The EMEA division design, develops, produces and sells passenger cars and light commercial vehicles under the Fiat,

Alfa Romeo, Lancia/Chrysler, Abarth and Fiat Professional brand names. It also offers related spare parts and provides

financial services related to the sale of cars and light commercial vehicles in Europe, primarily through the 50/50 joint

venture, named FGA Capital, with the Credit Agricole group.

Brazil - New Cars 0076 - 0358 - 2013


The group's components and production systems segment manufactures and markets lighting components, engine

control units, suspensions, shock absorbers, electronic systems, and exhaust systems. The segment offers plastic

molding components and after-market services under the Magneti Marelli brand name. It also provides cast iron

components for engines, gearboxes, transmissions, suspension systems, and aluminum cylinder heads under the Teksid

brand name. In addition, the segment deals with the design and production of industrial automation systems and related

products for the automotive sector under the Comau brand name.

Fiat's performance and luxury brands segment manufactures and markets luxury sport cars under the Ferrari and

Maserati brands. The segment also manages the Ferrari racing team and provides financial services for the sale of

Ferrari cars.

As of January 2014, Fiat completed the $4.35bn acquisition of shares in the Chrysler Group it did not previously own,

making Chrysler a wholly-owned subsidiary of the Italian carmaker.

Key Metrics

The company recorded revenues of $115,245 million in the fiscal year ending December 2013, an increase of 3.4%

compared to fiscal 2012. Its net income was $2,590 million in fiscal 2013, compared to a net income of $1,189 million in

the preceding year.

Table 8: Fiat S.p.A.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 43,386.6 47,629.2 79,062.0 111,449.3 115,244.5

Net income (loss) (1,112.4) 690.3 1,770.8 1,189.4 2,589.9

Total assets 89,251.6 97,491.1 106,237.7 108,992.2 115,188.8

Total liabilities 74,496.9 80,949.7 89,963.1 97,882.7 98,484.0

Employees 190,651 199,924 197,021 214,836 225,587

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 9: Fiat S.p.A.: key financials (€)

€ million 2009 2010 2011 2012 2013

Revenues 32,684.0 35,880.0 59,559.0 83,957.0 86,816.0

Net income (loss) (838.0) 520.0 1,334.0 896.0 1,951.0

Total assets 67,235.0 73,442.0 80,031.0 82,106.0 86,774.0



Brazil - New Cars 0076 - 0358 - 2013


Table 10: Fiat S.p.A.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin (2.6%) 1.4% 2.2% 1.1% 2.2%

Revenue growth (45.1%) 9.8% 66.0% 41.0% 3.4%

Asset growth 8.8% 9.2% 9.0% 2.6% 5.7%

Liabilities growth 10.8% 8.7% 11.1% 8.8% 0.6%

Debt/asset ratio 83.5% 83.0% 84.7% 89.8% 85.5%

Return on assets (1.3%) 0.7% 1.7% 1.1% 2.3%

Revenue per employee $227,571 $238,236 $401,287 $518,765 $510,865

Profit per employee ($5,835) $3,453 $8,988 $5,536 $11,481


Figure 13: Fiat S.p.A.: revenues & profi tability


Brazil - New Cars 0076 - 0358 - 2013


Figure 14: Fiat S.p.A.: assets & liabilities


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Ford Motor Company

Table 11: Ford Motor Company: key facts

Head office: One American Road, Dearborn, Michigan 48126, USA

Telephone: 1 313 322 3000

Local office: Avenida Toboão, 899, Prédio 6, São Bernardo do Campo, SP 09655-900, BRA

Telephone: 55 11 4174 3929

Website: www.ford.com


Ticker: F

Stock exchange: New York


Ford, one of the oldest car manufacturers in the world, designs, builds and sells cars, utility vehicles and trucks. The

company's core and affiliated automotive brands include Ford and Lincoln. Ford, through its subsidiaries, also provides

vehicle financing services. It operates 65 plants globally spread across North America, Europe, South America, Asia

Pacific, and Africa.

The company's operating activity consists of two operating sectors, automotive and financial services.

Within the automotive business, the company is engaged in the design, development, manufacture, sale and service of

cars, trucks and service parts. Ford produces a range of vehicles including cars for the small, medium, large and

premium segments; trucks; buses/vans (including minivans); full -size pickups; sport utility vehicles (SUVs) and vehicles

for the medium/heavy segments.

The company's automotive business is organized into the following segments: Ford North America, Ford Europe, Ford

South America and Ford Asia Pacific Africa.

The Ford North America segment primarily includes the sale of Ford and Lincoln vehicles and related service parts in

North America (the US, Canada and Mexico), together with the associated costs to design, develop, manufacture and

service these vehicles and parts.

The Ford Europe and Ford South America segment includes primarily the sale of Ford branded vehicles and related

service parts in Europe (including all parts of Turkey and Russia) and in South America, respectively. The Ford Asia

Pacific and Africa segment primarily includes the sale of Ford branded vehicles and related service parts in the Asia

Pacific region and South Africa.

In addition to retail sales, Ford also sell cars and trucks to its dealerships for sale to fleet customers, including

commercial fleet customers, daily rental car companies, and governments. The company also provides a wide range of

after-sale vehicle services and products, including maintenance and light repair, heavy repair, collision repair, vehicle

accessories and extended service contracts. In North America, Ford marke t these products and services under several

brands, including Ford Service, Lincoln Service, Ford Custom Accessories, Ford and Lincoln Extended Service Plans,

and Motorcraft.

The financial services sector includes the following segments: Ford Credit and other financial services. Ford Credit

provides vehicle-related financing, leasing, and insurance. Other financial services include a variety of businesses

including holding companies, real estate, and the financing and leasing of some Volvo vehicles in Europe.

Brazil - New Cars 0076 - 0358 - 2013


Key Metrics



the preceding year.

Table 12: Ford Motor Company: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 116,283.0 128,954.0 135,605.0 133,559.0 146,917.0

Net income (loss) 2,717.0 6,561.0 20,213.0 5,665.0 7,155.0

Total assets 192,040.0 164,687.0 178,348.0 189,406.0 202,026.0


Employees 176,000 164,000 164,000 171,000 181,000


Table 13: Ford Motor Company: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 2.3% 5.1% 14.9% 4.2% 4.9%

Revenue growth (19.0%) 10.9% 5.2% (1.5%) 10.0%

Asset growth (12.0%) (14.2%) 8.3% 6.2% 6.7%

Liabilities growth (14.2%) (17.3%) (1.2%) 6.0% 1.3%

Debt/asset ratio 104.1% 100.4% 91.5% 91.4% 86.8%

Return on assets 1.3% 3.7% 11.8% 3.1% 3.7%


Profit per employee $15,438 $40,006 $123,250 $33,129 $39,530


Brazil - New Cars 0076 - 0358 - 2013


Figure 15: Ford Motor Company: revenues & profitability


Figure 16: Ford Motor Company: asse ts & liabilities


Brazil - New Cars 0076 - 0358 - 2013


General Motors Company

Table 14: General Motors Company: key facts

Head office: 300 Renaissance Center, Detroit, Michigan 48265 3000, USA

Telephone: 1 313 556 5000

Local office: General Motors do Brasil Ltda., Avenida Goiás, 1805, Sao Caetano do Sul, SP 09550-050, BRA

Telephone: 55 11 4234 7700

Fax: 55 11 4234 8572

Website: www.gm.com


Ticker: GM

Stock exchange: New York


General Motors (GM) designs, manufactures, and markets automotive products worldwide. The company and its

strategic partners manufacture vehicles in 30 countries. GM’s range of brands includes Chevrolet, Buick, GMC, Cadillac,

Baojun, Holden, Opel, Vauxhall and Wuling. GM operates in more than 120 countries worldwide with a major presence in

the US, Canada, Brazil, Korea, the UK, and Germany.

The company operates through five business segments, GM North America (GMNA), GM International Operations

(GMIO), GM Europe (GME), GM South America (GMSA), and GM Financial.

GMNA has sales, manufacturing and distribution operations in the US, Canada and Mexico and sales and distribution

operations in Central America and the Caribbean. GMNA primarily sells vehicles under the Buick, Cadillac, Chevrolet

and GMC brands.

GMIO is engaged in manufacturing and distribution operations in Asia -Pacific, Eastern Europe (including Russia and

other members of the Commonwealth of Independent States among others), Africa and the Middle East.

GME is engaged in sales, manufacturing and distribution operations across Western and Central Europe. In addition to

Western and Central Europe, the segment includes Eastern Europe (including Russia and the other members of the

Commonwealth of Independent States among others).

GMSA has sales, manufacturing and distribution operations in Brazil, Argentina, Colombia, Ecuador and Venezuela as

well as sales and distribution operations in Bolivia, Chile, Paraguay, Peru and Uruguay.

The company offers financial services through its GM Financial business segment. The segment specializes in

purchasing retail automobile installment sales contracts originated by franchised and select independent dealers in

connection with the sale of used and new automobiles.

Key Metrics



the preceding year.

Brazil - New Cars 0076 - 0358 - 2013


Table 15: General Motors Company: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 104,589.0 135,592.0 150,276.0 152,256.0 155,427.0

Net income (loss) 104,821.0 6,172.0 9,287.0 6,136.0 5,331.0

Total assets 136,295.0 138,898.0 144,603.0 149,422.0 166,344.0


Employees 217,000 202,000 207,000 213,000 219,000


Table 16: General Motors Company: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 100.2% 4.6% 6.2% 4.0% 3.4%

Revenue growth (29.8%) 29.6% 10.8% 1.3% 2.1%

Asset growth 49.7% 1.9% 4.1% 3.3% 11.3%

Liabilities growth (39.1%) (5.2%) 3.8% 6.4% 9.6%

Debt/asset ratio 78.8% 73.2% 73.0% 75.2% 74.0%

Return on assets 92.2% 4.5% 6.6% 4.2% 3.4%




Figure 17: General Motors Company: revenues & profi tability


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Figure 18: General Motors Company: assets & liabilities


Brazil - New Cars 0076 - 0358 - 2013


Volkswagen AG

Table 17: Volkswagen AG: key facts

Head office: Brieffach 1848 2, 38436 Wolfsburg, DEU

Telephone: 49 5361 9 0

Fax: 49 5361 9 2828 2

Local office: Volkswagen Do Brasil Ltda., Rua Volkswagen, 291 Parque, Jabaquara, Sao Paulo, SP 04344-010, BRA

Telephone: 55 11 5582 5122

Fax: 55 11 5582 5030

Website: www.volkswagenag.com


Ticker: VOW

Stock exchange: Frankfurt


Volkswagen AG, the parent company of the Volkswagen Group, manufactures passenger and commercial vehicles. The

group is also active in other fields of business including: manufacturing large -bore diesel engines for marine and

stationary applications, turbochargers, compressors and chemical reactors. It has 102 production plants in 19 European

countries and a further eight countries in the Americas, Asia and Africa. Volkswagen sells its vehicles in more than 153

countries.

The group operates through four business segments: passenger cars and light commercial vehicles, trucks and buses,

financial services, and power engineering.

The passenger cars and light commercial vehicles segment is engaged in the development of vehicles and engines,

production and sale of passenger cars and commercial vehicles, and the genuine parts business. The group sells its

vehicles under various brands, including: Volkswagen, Audi, Porsche, SEAT, Skoda, Bentley, Bugatti, Lamborghini, and

Volkswagen Commercial Vehicles. Each brand operates as an independent entity in the ma rket. In the commercial

vehicle sector, the group offers buses, pick-ups and heavy trucks. It also includes the Ducati motorcycle business.

Volkswagen's trucks and buses segment include the operations of the Scania and MAN brands. The segment is primarily

engaged in the development, production and sale of heavy commercial vehicles and buses, its related genuine parts

business and services.

The Volkswagen financial services segment comprises dealer and customer financing, leasing, banking and insurance

activities, as well as fleet management. The segment co-ordinates the global financial services activities of Volkswagen

(excluding Scania and MAN brands) and the Porsche brands, as well as the financial services business of Porsche

Holding Salzburg. The principal companies in this segment include: Volkswagen Bank, Volkswagen Leasing in Europe,

and VW CREDIT in North America.

The group's power engineering segment is engaged in the development and production of large -bore diesel engines,

turbo compressors, industrial turbines and chemical reactor systems as well as the production of gear units, propulsion

components and testing systems.

Key Metrics


compared to fiscal 2012. Its net income was $12,140 million in fiscal 2013, compared to a net income of $29,046 million

in the preceding year.

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Table 18: Volkswagen AG: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 139,631.2 168,421.1 211,513.0 255,769.1 261,518.3

Net income (loss) 1,274.4 9,073.2 20,454.8 29,046.1 12,139.6

Total assets 235,196.2 264,685.7 336,677.6 410,871.9 430,538.2


Employees 329,423 399,381 501,956 549,763 563,066


Table 19: Volkswagen AG: key financials (€)

€ million 2009 2010 2011 2012 2013

Revenues 105,187.0 126,875.0 159,337.0 192,676.0 197,007.0

Net income (loss) 960.0 6,835.0 15,409.0 21,881.0 9,145.0

Total assets 177,178.0 199,393.0 253,626.0 309,518.0 324,333.0



Table 20: Volkswagen AG: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 0.9% 5.4% 9.7% 11.4% 4.6%

Revenue growth (7.6%) 20.6% 25.6% 20.9% 2.2%

Asset growth 5.5% 12.5% 27.2% 22.0% 4.8%

Liabilities growth 7.1% 7.8% 26.3% 19.6% 3.0%

Debt/asset ratio 78.9% 75.6% 75.0% 73.5% 72.2%

Return on assets 0.6% 3.6% 6.8% 7.8% 2.9%




Brazil - New Cars 0076 - 0358 - 2013


Figure 19: Volkswagen AG: revenues & profitability


Figure 20: Volkswagen AG: asse ts & liabilities


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MACROECONOMIC INDICATORS

Country Data

Table 21: Brazil size of population (million), 2009–13

Year Population (million) % Growth

2009 191.5 1.0%

2010 190.8 (0.4%)

2011 192.4 0.9%

2012 194.0 0.8%

2013 195.6 0.9%


Table 22: Brazil gdp (constant 2000 prices, $ billion), 2009–13

Year Constant 2000 Prices, $ billion % Growth

2009 1,019.8 (0.3%)

2010 1,096.6 7.5%

2011 1,126.5 2.7%

2012 1,136.4 0.9%

2013 1,165.1 2.5%


Table 23: Brazil gdp (current prices, $ billion), 2009–13

Year Current Prices, $ billion % Growth

2009 1,622.3 (1.9%)

2010 2,142.9 32.1%

2011 2,474.6 15.5%

2012 2,253.1 (9.0%)

2013 2,452.8 8.9%


Brazil - New Cars 0076 - 0358 - 2013


Table 24: Brazil inflation, 2009–13

Year Inflation Rate (%)

2009 4.9%

2010 5.0%

2011 6.5%

2012 5.4%

2013 6.2%


Table 25: Brazil consumer price index (absolute), 2009–13

Year Consumer Price Index (2000 = 100)

2009 119.7

2010 125.7

2011 133.9

2012 141.1

2013 149.8


Table 26: Brazil exchange rate, 2009–13

Year Exchange rate ($/BRL) Exchange rate (€/BRL)

2009 2.0085 2.7928

2010 1.7675 2.3459

2011 1.6698 2.3230

2012 1.9536 2.5057

2013 2.1574 2.8685


Brazil - New Cars 0076 - 0358 - 2013


APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross -

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in -house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Brazil - New Cars 0076 - 0358 - 2013


Industry associations

International Organization of Motor Vehicle Manufacturers

4 rue de Berri, 8ème arrondissement, Paris, FRA

Tel.: 33 1 4359 0013

Fax: 33 1 4563 8441

www.oica.net

Associacao Nacional dos Fabricantes de Veiculos Automotores Avenida Indianopolis, 496, Sao Paulo - SP, 04062-900, BRA

Tel.: 55 11 2193 7800

www.anfavea.com.br

Related MarketLine research

Industry Profile

New Cars in Mexico

New Cars in the United States

New Cars in Germany

New Cars in China

New Cars in Argentina

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UNITED KINGDOM, EC1R 3DA

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