Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Brazil Slowdown Prompts Carmaker Renault Argentina to Cut Shifts

June 7 (Bloomberg) -- Renault Argentina SA, the country’s third-biggest car producer, is cutting back on shifts at its Cordoba plant after a drop in sales prompted by slowing demand in neighboring Brazil.

The maker of the Clio and Kangoo models will halt one of two production shifts today and both shifts tomorrow and on June 15 in part because of falling sales, according to an official at the company who isn’t authorized to speak publicly. The plant employs 1,800 people.

The Argentine auto industry has been hit by a drop in demand from Brazil, the country’s biggest trading partner. Vehicle exports fell 46 percent in May from a year earlier, according to a June 5 statement by the Argentine Automakers Association. Domestic sales of vehicles slid by 15 percent over the same period, while output dropped 24 percent.

South America’s second-biggest economy will expand 2 percent this year, according to Boris Segura, a Latin America analyst at Nomura Holdings Inc. Segura cut his earlier forecast of 3 percent due to import restrictions and lower investments. That would be the weakest growth since a 0.9 percent expansion in 2009.

Officials at the press office of Renault Argentina didn’t respond to a phone message and e-mail left by Bloomberg News.

To contact the reporter on this story: Eliana Raszewski in Buenos Aires at eraszewski@bloomberg.net.

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.