BUENOS AIRES--Production in Argentina's auto industry tumbled
24% to 461,291 vehicles during the first nine months of the year,
according to data published Friday by car manufacturer association
Adefa. Car sales also fell, by 26% to 561,000 vehicles, the
association said.
The decline was a sharp turnaround for local units of big car
manufacturers such as Ford Motor Co. (F), Renault S.A. (RNO.FR) and
Volkswagen AG (VOW.XE), which enjoyed brisk sales for years. Last
year, a record 955,000 vehicles were sold, partly due to cheap
credit and growing inflation, which sent many Argentines hedging
against price increases through durable goods such as cars.
But the Argentine government has faced a dollar crunch this
year. Any hopes that Argentina might borrow dollars from abroad
have also faded following a dispute with international creditors
that forced the country to default in July.
As a result of the cash crunch, the government started rationing
the greenback to the industry earlier this year--bad news for
companies that import about two-thirds of the parts used to make
cars.
Write to Ken Parks at ken.parks@wsj.com