SAO PAULO - Brazil's leading automakers have increased prices sharply to cope with inflation.
Volkswagen, Fiat, GM and Ford raised prices by up to 9.98 percent last week.
Brazil's automobile manufacturers' association said the country's currency devaluation in mid-January had raised the cost of raw materials and imported parts by up to 40 percent. Even with the increase VW will lose money on every car it makes this year, said VW do Brasil President Herbert Demel. Hugo Maia, head of the national dealer group, said the market will not bear the new prices. He predicted a 35 percent sales decline.