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Argentine auto production seen holding steady or dropping in 2016


Reuters

Argentina’s auto production will hold steady or drop slightly this year as sales are hit by the steep recession in main trading partner Brazil, the ADEFA association of vehicle makers said on Saturday.
“The external situation will remain complicated,” the president of ADEFA, Enrique Alemany, said in a statement published online. “There are no prospects for a Brazilian recovery.”
Brazil is the No. 1 buyer of Argentine car exports.
Alemany underscored measures taken by Argentina’s new, business-friendly government to improve the sector’s competitiveness such as cutting taxes on new cars and letting the peso float, resulting in a weaker and more competitive exchange rate.
President Mauricio Macri won election last year on promises to reboot Argentina’s ailing economy.
Auto production in the first quarter of 2016 dropped 18.1 percent on the year to 98,168 units, according to ADEFA.
Vehicle production slumped 12 percent in 2015.
Leading automakers operating in Argentina include General Motors Co, Ford Motor Co, Honda Motor Co Ltd , Toyota Motor Corp, Volkswagen AG, Peugeot SA and Renault SA.

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