Big Changes Ahead for Latin American Auto Industry says just-auto.com

    LONDON, May 14 just-auto.com -- During the next five
years, the auto industry in Latin America will change dramatically as trade
barriers between countries in the region are reduced dramatically.  This is
one of the conclusions of a research report undertaken by Marc Scheinman
exclusively for just-auto.  An article based on the findings of the report can
be accessed at:
http://www.just-auto.com/features_detail.asp?art=489&app=1&lk=prnwk68
    Between 1994 and 2000 the world's leading vehicle manufacturers invested
$30 billion in Mexico, Brazil and Argentina, Latin America's three most
important automotive production sites and markets.  But only Mexico recently
has returned a handsome profit to the vehicle builders on their huge capital
infusions because its automakers have been running their plants at virtually
full capacity since 1998.  By sharp contrast, the addition of a dozen new
plants in Brazil and Argentina during the 1995-2000 timeframe has created a
dangerous overcapacity problem.
    During the next five years Latin America's automotive industry will change
dramatically.  Trade barriers between North and South America will be reduced
sharply, especially between Mexico and MERCOSUR, as evidenced by the recent
Bilateral Brazil-Mexico Trade Agreement (2000) that lowered import tariffs on
vehicles to 8%.  This treaty already has made Mexico into a major export
destination of Brazil's automakers, and in the future it will offer them
access to the coveted US market.  In addition, integration between Mexico and
Brazil (and Argentina, too) will accelerate because the vehicle manufacturers
will persuade government leaders that only such trade integration will enable
them to rationalize Latin American production and end their multibillion
losses in South America.

    Read the article at:
http://www.just-auto.com/features_detail.asp?art=489&app=1&lk=prnwk68

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professionals worldwide.  Targeted specifically at industry and business
professionals the site provides a single point of reference for independent
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