Fiat Brazil's Cledorvino Belini declares that Fiat will produce 3.000 cars per day, the same rate as before the US crisis. That is the first 100% rebound of an automobile company in the world. Repeat: in the world.
This is partly due to the intelligent economic policies rapidly implemented by Lula, an autoworker himself.
Rather than dolling out billions to US car makers to enable them to pay suppliers of their unsold inventory, as the US policy, Brazilians economists slashed Excise Taxes on Cars, which led to consumers buying the unsold inventory, and replenishing car makers with cash. Simple as that.
There is an enormous difference though between US and Brazil. In Brazil 80% of the Brazilians are buying their first ever car, no recession is going to take that joy from them.
Americans with 2 to 3 cars are more likely to postpone replenishment.
Question: Which country will come out of this mess first? Countries like Brazil, that have consumers too eager to buy their first evers, or America and European countries with consumers heavily in debt?
Repeat it: where would you invest your money in the next couple of years?