Tuesday, August 21, 2012
The price of a CAR in Brazil!
I found this video today on a series of YouTube videos called "O Canal do Otario", which translates to "The Sucker Channel".
This particular video uses the Volkswagen Gol as an example of how Brazilian consumers are swindled by excessive taxes and abusive profit margins by Car factories and Car dealers established in the country.
By the way, I just found out Brazil has the largest amount of car factories anywhere in the world, who knew? Interesting fact, and proof that high import tariffs are a by far one of the most successful strategies adopted by the Brazilian government. Even the Chinese are ticked off they can't just import their cars into Brazil and are being pressed to open their car factories in the country and employ locals.
Long story short, the video calls the Brazilian consumer, or actually any consumer in Brazil for that matter, so they might as well be talking to you if you live in Brazil and have bought a car in recent years, and it will make you feel even worse if you bought a Volkswagen Gol.
So, the video goes on to say that a brand new Gol in Brazil costs R$37,000 and change, while the same car considering all import tariffs and shipping goes for R$22,000 in Argentina and for R$18,500 in Mexico. For the same amount you could buy a brand new Chevrolet Camaro in the United States.
Also, it shows that a brand new Volkswagen Gol costs only R$8,5000 to be made, including materials and labor, before taxes, and dealer and factory profits.
So if you would add 100% for taxes, 100% of profit margin for the factory and 100% profit margin for the Volkswagen dealer, you are still at R$32,000, and R$5,000 short of the price of the car for the end consumer in Brazil.
The video announcer goes on to say that he is not picking on Volkswagen in particular, he just chose the Gol as an example because it has been the NUMBER 1 car sold in Brazil for the past 25 years and it is also exported to a large number of countries around the world.
However the example is similar to all car companies with established manufacturing plants in the Brazilian territory, and in case you are not aware (like I wasn't before watching this video), they are the following:
Volkswagen, Ford, General Motors, Fiat, Mitsubishi Motors, Citroen, Peugeot, Nissan, Hyundai, Honda, Mercedes Benz, Chevrolet, Toyota, IVECO, Renault, BMW, Audi, Chrysler, Dodge and the list goes on... *this list is just for Car factories, it doesn't apply for buses or trucks.
The video ends with a plea for consumers to avoid buying cars and walk, use a bicycle or public transportation instead, saying it is better for your health and your pocket.
I noticed the Portuguese in the video is very clear so I decided to post anyway, it might be a good training if you are a Portuguese beginner.