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3 3.11 to 3.16.2019 In the bimonthly period, a total of 455.3 thousand vehicles left the factories, for an increase of 5.3% over the first two months of last year – thus reversing the drop of 10% in January 2019 compared to January 2018. Anfavea’s projections for the year point to an increase of 9%: “We will maintain the projections. And once we know the performance for the first 4-month period we will have a clearer perspective of the trend”. The balance of job generation was positive, with 514 new jobs created last month. According to Megale, 80 employees formerly in layoff were called back to their Jobs in February – right now the industry as a whole maintains a total of 696 people in layoff. Anfavea’s president also deemed positive the initiative of the São Paulo state administration of creating IncentivAuto, a program that calls for a rebate on the ICMS tax to carmakers that will invest at least R$ 1 billion in the state. Nevertheless, according to him, short-term issues for the industry remain unchanged. “Every reduction in the tax burden is welcome. Brazil has competitiveness issues, and lower taxes are positive. But this does not address the balance of ICMS tax credits that the State must pass on to the companies”. Megale said that the program was an initiative of the State administration and that Anfavea, even though aware of the scope of the program, did not participate in the discussions. He pointed out as well that the economic team in the State “is appreciative” of the issue of ICMS credit and is open to discussions on how to best address the issue. The decree concerning IncentivAuto was published in the State Official Gazette on Saturday 9. Some definitions remain to be clarified which will likely be made public by Ordinances in the coming weeks.