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NOVEMBER 19, 2008, 10:11 A.M. ET

TALK BACK: High Interest Rates Paralyzing Brazil Auto Market

Article
Comments

A teacher in Jundiai, Brazil, responds to Kenneth Rapoza's story "GM Brazil Subsidiary Safe, For Now, From Detroit Woes":

I have a different opinion about automotive marketing in Brazil. Due to the international economic crisis the national banks in Brazil increased interest rates and cars here were sold in monthly payments of 36, 48, 60 and 72 parcels. Now that the interest rates are very high and monthly payments are generally around 48 parcels, the practical result is that the automotive market is paralyzed.

It is forcing the local industry to stop production. The impact of this is already affecting ...