Ford will invest about ARS1bn (USD192.9m, 15 April 2013) in expanding production capacity at one of its Argentinean plants, reports Reuters News. The investment will enable the production of Ford's new Focus model. The expansion is expected to increase the plant's capacity by about 19%, creating some 300 new jobs in the process.
Significance: The expansion will conclude Ford's ARS2.71bn (USD522.7m) investment plan for the country running through 2011 to 2014. Ford was the highest selling brand in the country last month selling 12,602 vehicles during the month and accounting for 16.3% market share. The expansion is expected to enable Ford to boost its exports from the country; however it comes at a time when Argentina is locked in a trading dispute with its major trading partner Brazil to which it exports nearly 80% of its vehicles. Argentina, like Brazil, has been trying to restrict automotive imports into the country to improve its balance of trade. However it resolved its auto trade dispute with Mexico in December 2012 through an agreement which reduced the number of cars exported to Argentina without tariffs. Nevertheless despite the trading disputes with its trading partners, Argentina is witnessing a number of significant investments by global OEMs who are ramping up their export oriented production in the country. Last year, GM had also confirmed a plan to invest USD450m from 2013 to 2015 in Argentina to produce a new vehicle for the global and local markets.
