Argentina Gets $3.5 Billion Investment for Automobile Manufacturing

---

Researched by Industrial Info Resources (Sugar Land Texas) According to the Argentine Automobile Manufacturers Association (Adefa) automobile terminals located in Argentina are planning to increase the current 500,000 unit production to 750,000 units through a $3.5 billion investment by 2010.

Adefa is composed of local subsidiaries of the following companies: General Motors, Ford, Fiat, Peugeot-Citroen, Renault, Toyota, Volkswagen and DaimlerChrysler among others. Renault (France), for instance, will invest $110 million before 2009 on a project which entails the investment of $75 million in the short term to be done in the company’s plant in Santa Isabel located in the Mediterranean province of Córdoba between 2007 and 2008. In 2010, after the projects are implemented, Renault’s total production in Córdoba will be 110,000 units per year and 80% will be commercialized in foreign markets. For details, view related May 15, 2007 article - Renault to Implement Investment Plan in Cordoba, Argentina .

Argentina’s automobile production showed a 43% yearly growth. Automobile terminals through a current $2.4 million investment expect to exceed in 2007 a 500,000 production reaching a 300,000 units export and 450,000 in 2010. The main customers of Argentina’s automobile manufacturing market are Brazil, Mexico, Chile, Venezuela, USA, Paraguay, Bolivia, Colombia and Ecuador. According to Fernando Fraguio, Adefa’s President, in order to increase local sales and consequently boost national production, more credits should be provided by National Government.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.