South America’s light-vehicle production has a difficult and uncertain outlook

Historically, carmakers have targeted countries with large economies to establish a production base and this has been the case for South America.

Most carmakers have chosen Brazil as their foothold into the region, with its large domestic economy and export opportunities. American carmakers, such as GM and Ford, were the pioneers into the region, making initial investments in Brazil back in the 1920s. The various regional and international free trade agreements have also helped establish Brazil as the leading vehicle producer in the region.