With Brazil's economy continuing to develop, the spread of wealth has affected the automotive industry in a very positive way. Compared to 2012, this year has seen some dynamic growth in auto sales and production. Foreign automakers such as Ford (NYSE: F ) and General Motors (NYSE: GM ) have been popular carmakers with new car owners in Brazil. Both companies have seen sales grow there and are certainly hoping the trend will continue.
All 1.4 million cars that were sold between January and May have to fuel up somehow, and that is where Brazilian powerhouse Petrobras (NYSE: PBR ) comes in to the picture. As the largest energy company in the country, Petrobras' gasoline sales would presumably follow a similar growth trajectory as auto sales once the retirement of old vehicles is taken into consideration. If the gap between international fuel prices is allowed to be closed – the recent diesel price hike in March assisted with this – then revenue from the company's downstream could really take off.
Can Brazil aid in Ford's continued turnaround?
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For more facts on Ford and GM's recent sales and Petrobras' downstream struggles, tune in to the following video with Motley Fool analyst Taylor Muckerman.