Argentina Automotive Makers Look to Increase Output by 20%
Graphic courtesy of istockphoto.com
The Argentinian auto industry is expecting production to increase later in the year, with a boost in the country's automotive sector, despite imports into the country being negatively impacted by neighboring Brazil's economic crisis
Automotive producers in Argentina could increase their combined 2017 output by 20% compared to last year, according to S&P Global Platts.
In March, Argentina's government announced a plan to boost the country's automotive sector and generate output of more than 1 million units by 2023, according to S&P Global Platts.
Last year, the automotive industry in Argentina grew at 4% from January through April 2016.
According to data released by the statistical office in April 2016, industrial production contracted a sharp 6.7% on an annual basis. Also, in May 2016, massive layoffs and record-high inflation rates resulted in Argentinian and consumer confidence being at the lowest level in nearly two years.
However, the initiative announced in March this year includes investments of $5 billion over the next two years, the creation of 30,000 jobs, and a 35% increase in national auto parts output, according to S&P Global Platts.