Ford Argentina optimistic about Latam market http://today.reuters.com/news/articlebusiness.aspx?type=CARMFG&storyid=2006-11-02T194906Z_01_N02431722_RTRIDST_0_AUTOS-ARGENTINA-FORD.XML&from=business
Thu Nov 2, 2006
By Jorge A. Otaola
MAR DEL PLATA, Argentina, Nov 2 (Reuters) - Ford Argentina expects its production to rise further next year to help meet growing demand for automobiles domestically and elsewhere in Latin America, a company executive told Reuters on Thursday.
"We estimate about 7 percent growth in our production next year ... after having jumped two months ago to 340 units per day from 304 units" at the company's plant in a Buenos Aires suburb, said Jorge Di Nucci, Ford Argentina's director of institutional relations.
The local unit of U.S.-based Ford Motor Co. (F.N: Quote, Profile , Research) produces two vehicles in Argentina, the Focus car and Ranger pick-up truck. It employs 2,700 workers after having hired some 500 new employees this year.
The company plans to use more nationally produced parts as opposed to imported goods for its vehicles, which could lead it to expand operations and hire specialized workers.
About 70 percent of Ford Argentina's production is exported elsewhere in Latin America, with the most active markets being Mexico, Venezuela, Central America, Brazil and Chile.
"Our business grew a great deal between 2005 and 2006. It has grown about 30 percent, not only because of progress in the Argentine market but also because of all the growth in export markets," he said on the sidelines of a business seminar.
Argentina's economy is on track to grow about 8 percent this year, after three straight years of roughly 9 percent annual expansion.
"Ford's business outlook in 2007 looks very good, accompanying the country's growth in the last few years. We are sure this will continue, perhaps not as strong as before, but that is normal," Di Nucci said.
Automobile production has surged along with economic growth and a relatively weak peso currency <ARSB=>. It is expected to end 2006 very close to the record 400,000 vehicles produced in 1998, with about half those cars and trucks sold abroad.
"Exports account for more than 50 percent of production, which is very healthy. Exports are diversified and shielded from the ups and downs of any particular economy. In 2007, we think the 1998 record will be beaten," Di Nucci said.
Ford Argentina has a 20 percent market share in Argentina's automobile production.
"The Argentine government has been careful with the fiscal surplus and trade balance. This policy is the anchor that gives stability to the market and the economy and created fertile ground for the automobile sector to keep growing," Di Nucci said.
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