MercoPress. South Atlantic News Agency

Another record month for car production and sales in Argentina

In the first eight months, 28.379 cars have been exported to Europe

Argentine car makers set a new record for production in August, cranking out 84,655 vehicles amid brisk economic growth, an ongoing consumption boom and soaring exports to Brazil.

August vehicle production was up 18% on the year and up 20% from July, when output slipped because car makers conducted maintenance and had some problems getting parts from Japan, the vehicle production industry group Adefa reported Monday.

The industry is anticipating a record year for car production and sales, with 840,000 vehicles expected to come off the assembly lines this year, according to Adefa. That would handily beat the previous high mark set last year of 716,540 vehicles.

Exports in August also soared due to strong demand from neighboring Brazil, which takes more than 80% of the vehicles shipped from Argentina. August exports came in at 54,955, up 29% on the year and up 19% on the month.

Argentina's vehicle exports to Europe were more than five times greater on the year during the first eight months of 2011, totaling 28,379. Over 8% of exports went to Europe during the period.

The solid exports come despite a simmering trade spat with Brazil. In May, the government put up barriers to Brazilian imports, provoking anger and retaliation from its top trade partner and neighbor.

Brazil stopped granting non-automatic import licenses on a number of products, including automobiles and auto parts, which led to delays at the border of up to 60 days.

However, the governments have smoothed over the rift, and the delays have been cut to about 10 days, according to car makers.

Likewise the Association of Car Dealers, Acara, reported that during August 79.826 new cars were registered in Argentina, up 39% over the same month a year ago (57.402).

Car business dealership has been growing sustainedly for the last 22 months and in the eight months of 2011, the number of new cars registered totaled 596.634, which is 32% above Jan-August 2010, said Acara.