Media Reaction, Jornal do Brasil Newspaper, "Automakers

UNCLAS RIO DE JANEIRO 000069 SIPDIS STATE INR/R/MR; IIP/R/MR; WHA/PD DEPT PASS USTR USDOC 4322/MAC/OLAC/JAFEE E.O. 12958: N/A TAGS: KMDR OPRC OIIP ETRD XM XR BR SUBJECT: Media Reaction, Jornal do Brasil Newspaper, "Automakers trying to catch their breath" Center-left Jornal do Brasil commented on page A8 (03/31/2009): "The real-life soap-opera starring the USG and American automakers continues with twists and turns in every new chapter. Recently, General Motors confirmed the resignation of its CEO, Chrysler and Fiat announced a global alliance and President Barack Obama demanded promptness on restructuring plans. Meanwhile, in Brazil, the GOB reduced taxes on cars, motorcycles and trucks to facilitate sales. In different ways, governments are trying to take the reins of the situation, attempting to avoid unemployment and trying to save a crucial sector of their national economies from the abyss. In the United States, the automakers, which were poorly managed and not very competitive with their foreign competitors, were completely hit by the economic crisis... GM and Chrysler alone have received more than USD 17 billion from the USG, and they are asking for more to ensure their survival... With the same goal of keeping jobs, spurring consumption and stimulating this key sector of Brazilian economy, the GOB announced a mini-package yesterday, including the extension of tax incentives over car sales for an additional three months. The measure is conditioned by a no-firing policy by automakers in Brazil and was negotiated between the government and unions. While the situation looks critical in the U.S., here Finance Minister Guido Mantega is more optimistic. According to him, the Brazilian automobile industry was less affected by the crisis... All government efforts are valid in this sui generis moment of the global economy. Resuming economic growth is the top priority." MARTINEZ