GM Generali

Generali (AQEU:GM)
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General Motors Corp. (GMGMQ) car sales broke a record in June thanks to continued government tax breaks for auto makers, the company said Wednesday.

General Motors do Brasil Ltda sold 55,629 vehicles last month, the highest monthly sales volume in the company's 84-year history in Brazil.

While GM in the U.S. is in bankruptcy proceedings, its Brazil subsidiary is doing better than ever.

Part of the gains come from the fact that consumers expected the beneficial tax break to end in June and rushed to buy before prices of new cars rose by as much as 7%.

Car makers like GM have been exempted from an industrial production tax. Those tax savings were transferred onto consumers, who saw sticker prices on new cars drop since November.

The tax break was extended to Oct. 31 this week.

"June car sales for the Chevrolet brand have given us a vote of confidence for the future of this company in Brazil," said Jaime Ardila, GM's local chief executive.

General Motors also said Wednesday its first-half sales in China rose 38% from a year earlier to a record 814,442 units, underlining the importance of Brazil and China to the company.

Brazil and China are the leading Chevrolet markets after the U.S. Chevrolet is the only brand GM sells in Brazil.

-By Kenneth Rapoza and Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4541; kenneth.rapoza@dowjones.com