Car Production Drops in October, Manufacturers Demand Law to Sustain Jobs

NOVEMBER 06, 2020
The numbers of the automotive industry in October. Photo: Renault.

There were 28,706 vehicles produced during October in Argentina, a figure that marks a drop of 9.8 percent compared to the same month in 2019 (31,834) and 10.7 percent compared to September, when 32,149 units were produced. The data was revealed by the Manufacturers Association (Adefa).

With October's production, the accumulated annual production reached 194,445 vehicles. This is 28.8 percent less if we take as a reference what was produced between January and October of last year (273,164). This year, as a result of the pandemic, all factories closed between one and three months.

The president of Adefa, Daniel Herrero (who is also president of Toyota Argentina) awarded the fall of October to the working day less activity (there were 21 compared to 22 September) and that "some partner companies have made adjustments in their production lines for the launch of new models.

Within this framework, Herrero requested "to advance with dialogue and consensus in promoting the Framework Law for our Industry because it is a strategic sector for Argentine production due to its representativeness and spill over in the economic and social development of the country". The law that the automakers are asking the Government for includes five key points: promotion of new investments, international insertion, regime for the promotion of sustainable mobility, environmental regime for the integral management of vehicles at the end of their useful life or disuse, and the Institute of Mobility.

The export of cars, meanwhile, fell in October by 23.2 percent as a result of 14,845 offices, far from the 19,339 of the same month last year. The fall compared to September (17,903) is 17.1 percent. The data: October exports represent 51.7 percent of production in the same month.

What did grow was the internal sale of factories to dealers, encouraged by a growth in demand at the shows. The terminals sold 33,320 copies in October, 22.5 percent more than the same month in 2019 (27,204). The cumulative figure, however, remains 23.9 percent down this year (242,364 operations vs. 318,423).

Source: TN Autos

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