Brazilian Appliance Production Increases Follow Tax Cuts Dec 16, 2011

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Within a week of the Brazilian government cutting industrialized products taxes (IPI) the appliance industry in Brazil, and particularly Whirlpool Corp., is responding by adding jobs, according to Brazilian news outlet Diario do Grande ABC.

Whirlpool will hire 1100 workers to fill vacancies at factories in Rio Claro and Joinville, Brazil, and the news outlet reported Whirlpool's José Drummond who said he believes consumers will be much more motivated to shop at retail in December 2011 as well as in the first quarter of 2012. Drummond is executive vice president, Whirlpool Corp., and president, Whirlpool Latin America.

Whirlpool sells under the Brastemp, Consul, and other brands in Brazil and reportedly has a 40% share of the market. Drummond forecast—before the IPI cut - a Christmas orders increase of 15-20%, with growth in volume as high as 30% in some product categories.

The report said other appliance companies with a large share of the Brazilian appliance market, including Electrolux and Mabe, are also considering manufacturing increases.

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