MAR DEL PLATA, Argentina, Nov 9 (Reuters) - Ford Argentina sees overall auto production in the country rising to 600,000 vehicles in 2008, a 15 percent jump from projected record output this year, a company executive told Reuters on Friday.
Strong domestic demand and increasing exports to other Latin American markets will fuel the increased production, said Jorge Di Nucci, director of Ford Argentina.
"There are possibilities of reaching 600,000 units in 2008 thanks to demand in the Brazilian and Mexican markets," he said on the sidelines of a business seminar in the beach resort town of Mar del Plata.
Argentina's auto production surged in the last few years, thanks partly to government efforts to keep the peso weak.
Argentina is Latin America's third-largest car producer, with more than 60 percent exported to other Latin American markets. The domestic market is led by Volkswagen AG (VOWG.DE: Quote, Profile, Research), followed by General Motors Corp (GM.N: Quote, Profile, Research) and Ford Motor Co (F.N: Quote, Profile, Research).
Last year, total Argentine output totaled 432,101 vehicles, the highest level in eight years. Some auto executives forecast production could reach a record 500,000 vehicles this year.
The automotive sector, along with construction, has been one of the pillars of Argentina's explosive economic expansion. The economy has grown more than 8 percent a year following a 2001-02 economic crisis.
In August, the local unit of Ford announced plans to invest $156.5 million to begin production of a new car and pick-up truck targeting regional markets. (Translated by Kevin Gray; Editing by Braden Reddall)
- 
- 
- 
- 
- 
- 