The report has lowered its sales forecast for Colombia in 2009, as reflected in the latest Colombia Automotives Report. While posting positive sales figures for 2008, the global economic crisis is inevitably taking its toll on Colombia’s car industry.

According to industry data, wholesale vehicle sales reached 217,048 units in 2008 down by 16% year-onyear (y-o-y) after hitting an all time record in 2007. General Motors (GM) maintained its lead on the market, with sales totalling 77,754 units, giving the carmaker a market share of nearly 36%, despite an 18% y-o-y fall in its sales in the market. GM was followed by Renault (26,845 units) and Hyundai Motors (21,492 units). Both carmakers reported a fall in sales for the year. The drop in overall sales last year may be attributed to higher interest rates and the resulting impact on credit facilities, a weaker peso and higher running costs. The report expects sales to fall by around 7.5% in 2009 to 200,000 in line with industry expectations.

In terms of company news, GM’s Colombian subsidiary General Motors Colombia has unveiled plans to export some 10,000 vehicles to Venezuela in 2009. GM Colombia's President Santiago Chamorro revealed that the manufacturer plans to assemble these vehicles at its facility in Bogotá and export them to be sold in the Venezuelan market where the company is targeting sales totalling 200,000 units by the end of 2009.

GM is also looking to consolidate its position in the commercial vehicle segment with a new joint venture with Isuzu Motors, GM-Isuzu Camiones Andinos de Colombia Ltda. The venture aims to strengthen the long-standing business ties between the two partners and focus on the expansion of the commercial vehicle segment in Colombia. The new company will focus exclusively on the marketing, sales, service and after-sales of commercial vehicles. Vehicles would continue to be sold under the Chevrolet brand but will feature a ‘Technologia Isuzu’ sub-brand.