Car Production Plummets in Argentina, Thousands of Jobs Lost

By: PanAm Post Staff - Jun 5, 2014, 12:41 pm

EspañolArgentina’s Association of Automobile Manufacturers (ADEFA) released a report on Wednesday showing that car manufacturing in the country fell by 36 percent in May 2014 compared with the same period last year.

So far this year, Argentina’s auto-making industry has experienced a decline of 22.2 percent in production. ADEFA attributes the sharp drop to a decrease in exports and reduced local demand caused, in turn, by the country’s economic slowdown.

This situation has already forced car producers to suspend thousands of workers.

Since 2013, Argentina has suffered from high inflation, a currency crisis, and a lack of investment due to exchange controls, with a declining economy as a result.

Source: Reuters.