MercoPress. South Atlantic News Agency

Argentina car production booming expects record year in 2010

Minister Giorgi anticipates annual production of 700.000 units

Argentine car manufacturers are looking ahead with great optimism to what they consider an “excellent” 2010 when they expect to break several records, according to Cesar Luis Ramirez Rojas, president of the Argentine car manufacturers association

Car production is expected to reach 640.000 units of which 65% are to be exported mostly to Brazil which in 2009 absorbed 80% of Argentina’s overseas sales

According to Ramirez Rojas in an interview with the Buenos Aires press last year production reached half a million units. Production minister Deborah Giorgi is even more optimistic than the private sector and over the weekend was quoted saying that the 2009 production reached 530.000 units.

Ms. Giorgi also anticipated that this year production will reach an all time record of 700.000 units.

Back in 2002 in the midst of the worst economic crisis since the thirties Argentina car manufacturers produced 94.000 units, the lowest since 1960. But beginning 2003 the industry begun to recover and rapidly became the locomotive for Argentine industry.

At the beginning of 2008, optimism was predominant and estimates indicated that annual production would reach a record 620.000 units. But with the beginning of the world crisis production dropped and the total number of cars manufactured finally was 597.086, but still a record.

Last year begun with pessimism but ended with a relative optimism. The initial estimates indicated that the year would close with a production in the range of 430 to 450.000 vehicles, but the latest forecasts target over half a million units.