<font size=5>Car production and sale plummeted in January

Vehicle production and exports plunged by 54.6 percent and 60 percent respectively in relation to the same month in 2008, whereas sales of locally manufactured cars increased by 8.5 percent in the domestic market due to the official plan aimed to finance the purchase of new cars.

According to the information issued by the Argentine Car Manufacture Association (ADEFA), local automotive companies manufactured only 18.720 units in January, whereas in the same month of 2008, their production amounted to 41.728 units.

On the other hand, car exports dropped by 60 percent, registered 8.190 units. Sales to dealerships - which includes imported vehicles- decreased by 38.9 percent to 33.699 units.

According to ADEFA, local car manufacturing dropped by 29.9 percent in January compared to last December, whereas car exports declined 49.7 percent in relation to the last month in 2008.

Sales to dealerships fell 5.6 percent in the first month of the current year compared to the December 2008, dropped by 38.9 percent in relation to the same month in 2008.

Nonetheless, sales of locally manufactured cars in the domestic market posted a positive performance by increasing 8.5 percent in January compared to December 2008.

Car manufacturers managed to sell 15.678 vehicles in January, whereas they had reached 14.449 units last December.

The official plan aimed to finance the purchase of new cars, which was launched by President Fernández de Kirchner last December, had a main role in the sale rise. The official measure allows people to purchase a new car payable in 60 installments.