Lodi Valley News.com

Complete News World

Automakers want to end Stellantis subsidies in the Northeast

Automakers want to end Stellantis subsidies in the Northeast

Major auto manufacturers Brazil United against extending subsidies to Stellantis and other automakers installed in the Northeast and Midwest.

Stellantis owns the Peugeot brands, FiatJeep and Citroen. The main target of protests from other automakers, Stellantis has about R$5 billion a year in tax credits, according to the paper. State of Sao Paulo.

Advertising

Grant stellants

Stellantis calls for renewal of subsidy until 2032 | Photo: Playback / YouTube / Fiat Automovis Brasil

Because of subsidies, Stellantis cars are up to 20% cheaper to sell. The amount is equivalent to approximately 12% of the R$40 billion proposed by the tax reform of the Regional Development Fund to be distributed to the states.

The Stellantis-enabled feature was created in the late 1990s and was supposed to end in 2010. But it has been extended twice – once to include pocketwhich opened its factory in Guyana, Pernambuco, in 2015.

Currently, Stellantis benefits are expected to expire in 2025. The group is trying to extend the deadline to 2032, through tax reform. Congress has already refused to renew the entitlement, but it must return to the text with the support of President Luiz Inacio Lula da Silva.

Read also

An executive, who was not identified, told L.L.C Estadao. “Because one company gets almost all the benefits.”

Mora, a manufacturer of auto parts, from Pernambuco, is also benefiting from the programme. Carmakers Caoa/Chery and HPE/Mitsubishi, from Goiás, also get the advantage, though on more modest conditions.

The cumulative volume of subsidies to auto companies in the Northeast has exceeded R$50 billion since 2010, according to a review by Courts Union Accounts (TCU).

See also  Check the results of Quina 5991 and Lotofácil 2655 on Friday (4/11)