Argentina Faces Slow Auto Industry in June image

Adefa, the auto-making association in Argentina, announced that in the first half of 2012 vehicle output was down 15.4%, to 331,798 units.

In June the exported vehicles made up for 29,885 units, up 4.3% on the month but down 36% on the year. In the first six months of the year exports reached 173,472 units, down 28.4%. Brazil was the market that accounted for most of the exports, about 78%, followed by Europe with 8.9% and Colombia with 3.1%. Adefa President Viktor Klima declared that thousands of exported cars on their way to Brazil were held up due to trade issues, but that this problem has been solved.

Due to weak demand in Brazil, Renault halted production at its Cordoba plant until July 10th, suspending almost 1,600 workers at the factory. Car makers from Brazil are also trying to get back on the track, fighting with rising costs and competition. Production in the first half of this year fell 9.5% to 1.28 million units. Last month GM extended a voluntary layoff program at one of its plants in Brazil and added a second plant to this program.