Brazil: Rules Spur $2.1 Billion in Auto Investment

Brazil's Trade Ministry says the new restrictions it imposed on auto imports last year have prompted carmakers to commit 4.2 billion reals ($2.1 billion) in fresh spending in the country.

The government estimates that such investment will total 5.5 billion reals ($10.9 billion) by 2017.

Brazil told automakers last year that in September it would raise taxes on imported vehicles by 30 points except for companies that registered for a government program called Inovar Auto. Participants are required to pledge to achieve at least 65% local content and boost production and product development in Brazil.