In one stroke, Brazil hopes to rally a stalled automobile industry, jump-start a recycling industry, reduce air pollution and improve road safety. A utopian dream? Perhaps. But industry and labor leaders hope $1,000 in tax breaks and rebates will entice drivers to trade in their old-model cars for new automobiles rigged with modern emissions controls and safety equipment. The fleet renewal program, whose terms are now under negotiation, could boost auto sales by about 400,000 a year, they estimate. Re-use of components from the trade-ins will require some half dozen recycling centers, each of which will cost $6 million, according to the National Automobile Manufacturers Association (ANFAVEA). Brazilian manufacturing leaders—Volkswagen, Fiat, General Motors and Ford—are sounding out prospective local... [Log in to read more]
