Brazil Is at the Centre of Complaints from Multinational Companies

02/16/2015 - 11h30

Brazil became a source of concern in 2014 for most multinationals companies operating in the country.

Their complaints - when they published their results over the recent weeks - were the weak economy, tightening in credit, inflation and exchange rate.

Folha has learned through teleconferences that 85 foreign companies have mentioned Brazil in their comments.

Altogether, 54 had complaints. Twelve of them believe Brazil's current economic situation is not affecting the results, while 19 see good opportunities in the country.

The vehicle industry is the most concerned.

Companies like Daimler (owner of the Mercedes brand), Volvo, GM, Ford and Scania pointed out low demand, the difficult business environment and foreign exchange as obstacles to a good performance in the country this year.

For multinationals, the expensive dollar undermines the conversion of profits from Brazilian real to the American currency.

In some cases, it also is the cause of an increase in costs in local currency.

The expectation of a bad year is stronger among truck manufacturers, worried about the decrease of PSI resources (a BNDES Investment Maintenance Program that facilitates truck sales) and the high interest.

The consequences of Petrobras crisis also haunt suppliers of equipment for the oil and gas industry.

Translated by JULIANA CALDERARI

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	Fabio Braga/Folhapress
	The vehicle industry pointed out low demand and difficult business environment as obstacles to a good performance this year