BUENOS AIRES -(Dow Jones)- Argentine car sales plunged almost 20% on the year in December, but were still stronger than anticipated, according to the car dealer association ACARA.
After a mostly solid 2008, in which sales rose 8% for the full year, new car purchases dropped off sharply at the end of the year as consumer confidence was shaken by the international financial crisis and signs of a rapid slowdown in the local economy.
However, the drop in new car sales in December was less than ACARA had anticipated. In December, ACARA said that it was expecting a 30% on-year plunge in sales during the month.
Car makers were quick to cut back on manufacturing ahead of an expected drop in sales, with production in December plunging 47% on the year, according to a report from the car maker association ADEFA cited in local press reports Tuesday.
Faced with the abrupt decline in demand for new cars, car makers have been suspending and laying off workers to cut costs ahead of a possible recession.
The companies expect sales to decline at least 20% next year, Dominique Maciet, the president of both ADEFA and Renault Argentina Dominique Maciet, said recently.
Maciet said the industry may end up selling between 450,000 and 500,000 vehicles in 2009, down sharply from the 596,164 cars sold in 2008.
In response to the sharp slowdown, the government has introduced a credit plan designed to spur the sale of new cars. The government is using funds from the recently nationalized pension fund system to offer credit for the purchase of cars at well below market rates.
-By Shane Romig, Dow Jones Newswires; 54-11-4590-2438; shane.romig@dowjones.com
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Publié le 06 janvier 2009 Copyright © 2009 Dowjones