Automotive Industry in Argentina


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This publication will help you understand the Automotive in Argentina, a developed and innovative industry with a long tradition in the country.

The report includes:

International leading companies with presence in Argentina: Fiat, Ford, General Motors, Mercedes Benz, Peugeot-Citroën, Renault, Toyota, Volkswagen, Iveco and Scania.

Great opportunity for growth in auto parts to complement regional and global demand in the automotive industry which is increasing in sophistication and innovation.

Success case: Rafaela, Santa Fe (Basso) is a leading world producer and exporter of valves.

This document was produced by ProsperAr, Argentina´s Investment Development Agency.

If you need further assistance contact us at or use our website

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Automotive Industry in Argentina

  1. 1. INVESTMENT OPPORTUNITIES Automotive Industry in Argentina Driven to meet global market needs
  2. 2. Highlights A STRONG LOCAL INDUSTRY IN A PROMISING CONTEXT The global automotive industry is currently registering record production levels, mainly driven by an increasing demand and export dynamism in developing economies. A heavyweight in Argentina’s manufacturing sector, the automotive industry is a growth leader. OUTSTANDING PRODUCTION AND EXPORT PERFORMANCE Rocketing exports and domestic sales are driving Argentina’s automotive production, which has almost doubled since 00. Automobile production grew almost 0% per year over a five year period, reaching a record high of 545,000 units in 007. Manufacturers’ decision to use Argentina as an export platform for some models gave a big push to exports, which grew % per year in the same five year period. FIRST CLASS INTERNATIONAL PLAYERS International corporations with a historical presence in Argentina—like Fiat, Ford, General Motors, Mercedes Benz, Peugeot-Citröen, Renault and Volkswagen—as well as more recent arrivals—like Toyota—are making substantial investments to expand production capacities and improve technological capabilities. This dynamic industry is at the forefront of Argentina’s manufacturing sector. A BOOMING AUTO PARTS INDUSTRY The auto parts industry is booming. Auto parts manufacturers are seeing increased demand as automakers roll out new models, increase production capacity and move to outsource more of their needs. Current trends signal an important opportunity for domestic auto part suppliers to upgrade their production by working closely with automobile manufacturers with global presence. ATTRACTIVE AND PROFITABLE SEGMENTS Regional market growth, local skills and the country’s competitive exchange rate have opened profitable investment opportunities in the automobile, truck and motorcycle manufacturing segments.
  3. 3. I. Why Invest in Automotive Industry in Argentina? • PROMISING GLOBAL OUTLOOK. The global automotive • FROM ARGENTINA TO MERCOSUR AND THE WORLD. industry has reached record production levels. With Domestic production in the automotive industry is over 70 million motor vehicles produced in more than increasingly oriented towards both Mercosur and the 40 countries, this industry has seen steady growth global market, apart from satisfying the expanding over the past years. With global annual growth rates of domestic demand. Key global players in the sector have approximately 3%, performance has been diverse across chosen the country as an export platform to produce regions. The highly fragmented global auto parts and specific models to supply the growing regional market equipment market is valued at over US$500 billion. and, furthermore, to export automobiles from Argentina to the rest of the world. • A NEW ROLE FOR EMERGING ECONOMIES. A remarkable trend of the last decades is the growing share • PROFITABLE OPPORTUNITIES: AUTO PARTS of emerging economies in global automotive production. MANUFACTURING. In Argentina, auto part manufacturing New corporate strategies oriented towards the global and has mirrored the growth pattern in motor vehicle regional markets have sought to increase competitiveness, production and investments in the sector have also led to reduce costs and expand the product mix. With a thriving auto parts exports’ reaching unprecedented levels. Intense auto sector, the Asia-Pacific region doubled its production competition has led auto parts manufacturers to focus on in the last decade, while South American output grew 50% certain elements of the value chain. Top performers in this during this period and Eastern Europe’s over 30%. With market have been able to incorporate modern production a demand previously concentrated in fewer regions, the technologies and best practices, and have concentrated auto parts and equipment market has also grown rapidly in on high-tech segments of the market. Due to past and emerging countries. projected investments, Argentina is well positioned to compete successfully in this global market. • STRONG FOUNDATION FOR SUCCESS. In Argentina, the automotive industry is highly dynamic and remains a • ATTRACTIVE SEGMENTS: TRUCKS AND MOTORCYCLES. leader in the country’s overall manufacturing production. Argentina’s strong economic growth has also encouraged Vehicle production has more than tripled since 2002 and a rise in demand for trucks and motorcycles. Currently, strong growth is expected to continue. Access to new demand in these two markets is mainly met by imports. markets, large Foreign Direct Investment (FDI) inflows, Although domestic production has increased in response regional cooperation and the country’s competitive to this trend, there is still a sizable opportunity for local exchange rate have increased the sector’s technological manufacturers to increase their market shares. know-how and driven growth. 4
  4. 4. II. Sector Structure and Performance INDUSTRY STRUCTURE SECTOR PERFORMANCE Manufacturers. There are ten manufacturers present A key sector. The automotive industry is a key in Argentina –Fiat, Ford, General Motors, Iveco, Mercedes contributor to manufacturing production and exports in Benz, PSA Peugeot-Citroën, Renault, Scania, Toyota and Argentina. In 2007, it represented 2.5% of GDP (including Volkswagen– producing a total of 18 different models. A automotive parts manufacturing), 8.5% of industrial few of the models are commercial vehicles, however the production and 10% of exports. The automotive industry majority are passenger cars. remains one of the principal engines of industrial growth and technology transfer. A sustained expansion in both domestic demand and exports has supported continued Vehicle Production by Company (2007) fast growth in the sector: production expanded at an Iveco Mercedes Benz average rate of 29% per year during 2002-07 and the 1% 5% industry reached record high production numbers. As a VW 11% Peugeot % result, automotive production explained more than 30% of Renault 1% growth in the country’s industrial production over the past GM 1% Toyota 1% three years. Exports and employment also boomed steadily Ford 1% since 2002: exports were up 22% per year in the last five years (as some manufacturers have chosen Argentina as an export platform for certain models) and employment Argentine Association of Automobile Manufacturers (ADEFA) increased 55% between 2002 and 2007. Production and Exports of Vehicles (in thousands of units) Production and sales. Regarding production, Peugeot 00 Production was the leader in 2007, followed by Ford and GM. Toyota Exports 500 is one of the fastest-growing manufacturers in Argentina, thanks to large investments since 2002. Honda has also 400 announced its establishment in the country in 2009. 00 In terms of sales, Volkswagen was the market leader in 00 2007, accounting for 22% of the market. General Motors is 100 the second-largest company in Argentina regarding sales, 0 with 16% in 2007. Ford and Peugeot-Citroën share the 000 001 00 00 004 005 00 007 third place with 14% market share each. Argentine Association of Automobile Manufacturers (ADEFA) Auto parts. In addition to manufacturers’ activities, Record production and export levels. A record- Argentina has developed a large auto parts industry high level of 545,000 units was produced in 2007 (64% comprised by more than 400 companies. This segment passenger cars, 36% commercial vehicles), comfortably creates 62,000 jobs, vis-à-vis less than 20,000 jobs at the surpassing the previous peak of 1998. In 2007, 58% of manufacturers. Most firms are located in the provinces of the vehicles produced were exported, reaching a new Buenos Aires, Córdoba and Santa Fe. exporting record of 316,000 units. Brazil accounted for over one-half of Argentina’s vehicle exports. However, the export base has diversified in recent years, reaching 84 different countries in 2007, with Mexico (13% of exports), Venezuela (5%) and Chile (5%) becoming increasingly important markets. Triggered by growing automotive production, automotive parts sales also expanded 5
  5. 5. significantly between 2002 and 2007 (at a compound higher in the provinces than in the city of Buenos Aires. annual rate of 24%) and peaked at US$5.5 billion in 2007. The domestic market for motorcycles has boomed over Auto parts exports have doubled in the last five years, the past five years, reaching 680,000 units sold in 2007, reaching an unprecedented level of US$2.2 billion in 2007. compared to 12,000 units sold in 2002. Production increased significantly to keep up with rising demand, Innovation. Large inflows of FDI expanded production peaking at over a quarter million units. Demand was capacities and brought technological know-how for fostered as a result of the strong economic growth of the process improvements. All automotive companies past years, the recovery of purchasing power, employment, currently operating in Argentina increased their consumption and the widening gap between prices of production levels to meet the rising local and external automobiles and motorcycles. During this period, imports demand. At the same time, the industry started playing (634,000 units in 2007) grew even faster than production a more important role internationally when the (at a compound annual growth rate of 128% between 2002 manufacturing of new models was set in the country: seven and 2007 vis-à-vis a rate of 121% for production during the new models were introduced between 2003 and 2007. same period). Over 90% of imported models, mainly small motorcycles, come from China. INDUSTRY SEGMENTS INVESTMENT Some new segments are gaining share in vehicle production and represent attractive investment The strong recovery of automotive production has opportunities. Car production accounted for 64.4% of total prompted strong investment commitments on behalf of production in the industry and light commercial vehicles a number of manufacturers. According to the Argentine represented 34.6% in 2007. Heavy trucks, coaches and Association of Automobile Manufacturers (ADEFA), buses represented the remaining 1%. Regarding sales, cars manufacturers have invested US$1.2 billion in facilities accounted for the lion‘s share of the domestic market with since 2003 and estimate that investment will exceed US$3.5 75% of the total, light commercial vehicles accounted for billion between 2007 and 2010; over US$1.7 billion in 2007 20% of total sales, and heavy trucks, coaches and buses for alone. This would increase output to 800,000 units by 2010. the remaining 5%. • Volkswagen announced a US$100 million investment Trucks. Demand for trucks has increased stimulated to expand current capacity for the production of by the economic growth over the past five years and transmission gears; and another US$320.5 million to particularly by the agriculture boom. IVECO is the only manufacture its first pick-up truck, with an estimated truck manufacturer in Argentina (5,100 units in 2007). The output of 90,000 units in 2009. domestic market is mostly supplied by imports. Production • Ford: will invest US$161 million for the production of has grown steadily since 2002 to meet the increasing a new medium-sized model in 2008 and a new pick- demand; however imports increased faster than up truck in 2010. In 2006, the completion of previous production. Currently imports are 3.5 times the level of investment projects resulted in an increase in production domestic production. from 300 units per day to 340 units. • PSA Peugeot-Citroën: announced a US$24 million Motorcycles. Both world-class foreign companies investment to expand current capacity and to increase (Honda, Yamaha, Cagiva, BMW, Gilera, Jawa) and the integration of local parts in their domestic domestic firms are players in the local motorcycle production. ¤76 million were already invested to start industry. The most important motorcycle manufacturers the production of the new Citroën C4. are located in the province of Buenos Aires. Additional • Toyota: announced an investment of US$41.5 million companies are located in the provinces of Córdoba, Santa to increase production of auto parts. Toyota has so far Fe, San Luis, San Juan and Catamarca. Demand remains invested US$ 1 billion in Argentina.
  6. 6. • Honda: is investing US$100 million in a new plant in the TRADE PERFORMANCE city of Campana to produce a new medium-sized model. The start of production of 30,000 units is projected for Rising imports. The surge in demand during the last 2009, two-thirds of which is expected to be exported five years triggered production as well as imports in to Brazil. the industry. While automotive exports expanded at a • Mercedes Benz: announced a US$50 million capital compound rate of 22% in the period 2002-07, imports investment to produce the NCV3, a new commercial doubled this expansion rate, reaching a record high vehicle. number of 330,000 imported vehicles in 2007. Brazil was • General Motors: announced a US$200 million the source of over 75% of vehicle imports in 2007, followed investment for the production of a new model at the by Mexico (5%) and Germany (5%). The elevated amount company’s plant in Rosario. of imported units surpassed exports in 2004 originating • Fiat: following an agreement between Fiat and Tata a trade deficit of 14,000 units in 2007. The auto parts Motors, the Fiat plant in Ferreyra in the province of segment also exhibits a trade deficit, due to high-speed Córdoba is expected to reopen to manufacture a new imports’ expansion (at a compound rate of 38%) since 2003. medium-sized car model and a pick-up truck. In 2008, the company will invest US$60 million to produce An opportunity. This trade deficit represents an 50,000 units per year of the Siena model. opportunity for both automobiles and auto parts • Renault: announced a US$80 million investment for manufacturers to further develop local production and the production of a new vehicle, and to increase the increase the share of nationally produced components in production of the Kangoo and Clio models. the automotive global value chain. • Auto parts: auto parts companies of all sizes are also investing to improve their productivity levels, broaden Growth Projections (in thousand of units) their production capacity and develop new products. 100 Production Exports Projected investment by car manufacturers will require a 1005 1000 5 120% increase in the production of auto parts, and might 1 00 745 generate up to 50,000 jobs. Investment announcements 1 5 4 00 544, 501 are expected to reach US$460 million in 2008, twice the 44 400 55 1,4 amount of 2004. 00 0 007 00 00 010 011 01 01 Argentine Association of Automobile Manufacturers (ADEFA) Automotive Production Trade Balance (in thousands of units) 400 Exports Imports Tr ade Balance 00 PERSPECTIVES 00 100 Sustained growth expectations. According to 0 ADEFA, the sustained growth trend in the sector will 000 001 00 00 004 005 00 007 -100 Source: Argentine Association of Automobile Manufacturers (ADEFA) keep up in the foreseeable future. Nine new models are expected to begin production in Argentina between 2008 Autoparts Trade Balance (in US$ millions) and 2010. In total, forecasts estimate that between 2007 ,000 and 2013 production will increase 85%, exports will double Exports Imports Tr ade Balance ,000 and domestic market will grow by 30%. As a result, it is 4,000 expected that the share of the whole industry in GDP will ,000 double between 2007 and 2013. 0 00 004 005 00 007 -,000 -4,000 -,000 Source: Association of Argentine Auto Parts Manufacturers (AFAC) 7
  7. 7. III. Foundation for Success LOCAL SKILLS AND TALENT ATTRACTIVE MARKET Industry expertise. Motor vehicle production has Promising market potential. Vehicle penetration been present in Argentina for more than six decades. in Argentina is elevated compared with Latin American This tradition and experience in automotive production economies and other developing markets (146 vehicles per is reflected in a highly qualified domestic labor force, 1,000 population, vis-à-vis 149 in Mexico, 103 in Chile, 96 characterized by both well-built technical capabilities and in Brazil and 81 in Venezuela), but still reduced compared flexibility to adapt to a changing work environment. with developed markets. These figures entail room for further sustaining the recent growth in sales, particularly Growing skills. This pool of high skilled workers supported by a rising domestic purchasing power. is permanently increased by professionals trained in universities (including the National Technological Mercosur. Argentina is a full member of Mercosur, University) and technical schools (in some cases managed a common market also integrated by Brazil, Paraguay by the own manufacturers, such as the case of the Henry and Uruguay. As such, Argentina has preferential Ford School). Additionally, the National Network of access to a regional market of 238 million inhabitants, Professional Training in automotive mechanics was created with a combined GDP of US$1,607 billion (2007). As in 2004 jointly by the government, the Mechanics and part of Mercosur, Argentina has concluded Economic Automotives Transport Union (SMATA) and the Argentine Complementation Agreements with Bolivia, Chile, Federation of Auto-repair Shops (FAATRA). This network Colombia, Ecuador, Peru and Venezuela, enlarging the is aimed at promoting professional education in the sector potential market to 381 million consumers and a combined at the national, provincial and municipal level. GDP of US$2,346 billion.
  8. 8. INDUSTRY NETWORKING C A S E S T U DY MERCEDES BENZ ADEFA. Founded in 1961, ADEFA represents all the a leading automotive company increasing automotive manufacturers in Argentina. The association’s export production in Argentina main purposes are to boost the local production of vehicles, to foster investment in the automotive sector Mercedes Benz, one of the world’s premier automobile and to promote the industry entrepreneurship and companies, has been in Argentina for the past 57 years. competitiveness. Of particular importance among the Since its arrival, the company has been a strong industrial numerous activities carried out by ADEFA are those presence in the country with a demonstrated export intended to promote the specialization of the automotive bias. Its industrial center “Juan Manuel Fangio,” located sector and a complementary symmetric system within the in La Matanza (Province of Buenos Aires) reflects the Mercosur. Furthermore, ADEFA permanently seeks the firm’s early commitment to investing and producing in penetration of new markets for vehicles made in Argentina the country, as it was the first center ever to be located and throughout Mercosur. outside the company’s country of origin, Germany. AFAC. Auto parts manufacturers are represented in In Argentina, Mercedes Benz is a full-liner company and the Association of Argentine Auto Parts Manufacturers commercializes trucks, buses, vans and premium vehicles. (AFAC), an association founded in 1939 whose task is The company’s industrial center currently operates 4 the promotion of auto parts and all those necessary hours a day and has more than ,700 employees. This components for the manufacturing and repair of high production rates prompted the addition of more automobiles in the country. AFAC aims to improve and than 100 new skilled employees in 007 and 00. strengthen the development of the auto parts business, promote the development of the Argentine automobile Since 1, Mercedes Benz Argentina produces and industry as a whole and promote exports. exports the Sprinter passenger van model to more than 5 countries. More than 5% of production is exported to countries in Europe, Asia, the Middle East, Oceania and the Western Hemisphere, making Sprinter the Argentine vehicle with the highest number of global destinations. This locally produced vehicle has the same characteristics and quality standards than those produced at Mercedes Benz’ German headquarters, a fact that accounts for the outstanding level of local labor. Mercedes Benz Argentina has just concluded investments for more than €5 million in the creation of a new assembly line and production platform in Argentina. The passenger car built on this site is 100% destined to the external market. The company is also working with a number of local providers to develop national production of auto parts for its vehicles and is investing more than €1 million in this process. In addition, production of a new chassis for urban buses (OF 141) has just begun and has been added to the production of the OH 115, already made in Argentina.
  9. 9. IV. Policy Initiatives REGIONAL TRADE INCENTIVES Special trade regime with Brazil. The automotive Local integration. Additionally, other policy initiatives sector enjoys significant government support, benefiting have been put in place to promote the auto parts sector, from a special trade regime with Brazil and various including reimbursements to automobile manufacturers, incentives for manufacturers. As part of Mercosur, both trade negotiations conducted by the national government Argentina and Brazil share a common external tariff and a specific regime. A cash reimbursement fiscal benefit (CET) of 35% for finished products (with an inferior is in place for vehicles produced domestically and that tariff in Argentina for trucks and buses) and of 14-18% for have imported parts whose value do not exceed 30% of non-locally produced parts. In 1994, the two countries the wholesale price of the final good (Decree 774/05). signed a bilateral trade agreement, providing for duty-free Specifically, a company manufacturing vehicles in trade both in automobiles and auto parts, subject to the Argentina receives a cash reimbursement equivalent to 6% requirements of national regimes. Currently, zero-rate of the value of the locally produced parts being purchased. tariffs for bilateral trade are in place, subject to (decreasing) In addition, a Domestic Auto Parts Promotion Law was balanced trade requirements and regional and national enacted in June 2008. The initiative projects a production content requirements. Bilateral trade with Brazil is tariff- level of 500,000 engines and no less than 700,000 exempt within a “flex” mechanism, which determines the motorcycles by 2011, via the support of investment and level of Brazilian imports in relation to Argentine exports setting of new tax benefits. This includes reimbursement (tariffs apply if this level is exceeded). This mechanism is of 8% over the total domestic auto parts acquired by aimed at protecting the domestic industry as it gains global manufacturers during the first year. The reimbursement competitiveness. Currently, an asymmetric “flex” is in place, levels will be progressively reduced to 7% for the second favouring Argentine exports within Mercosur (Argentina year and 6% for the third. In relation to local components can export US$2.50 for every US$1.95 imported). This used for engines and transmission gears, reimbursement new system encourages investment plans by setting a percentages are 10% for the first year and are then predictable framework for the next five years and looks to progressively reduced to 6% on the fifth year (total period foster the share of domestic auto parts in bilateral trade . covered by the initiative). Trade with Mexico. In 2006, Argentina and Mexico eliminated all bilateral trade barriers in automobile trade and in June 2006 numerous tariffs were abolished in the auto parts sector. 10
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  11. 11. V. Main Challenges Industry players and government agencies face key • Take full advantage from a demanding domestic challenges to sustain growth and consolidate the sector’s and regional market: the advanced level of competitiveness. In themselves, these challenges present development of the domestic and regional markets attractive opportunities for the industry and Argentina. presents an attractive opportunity for the sale of models adapted to regional consumer demands. • Improve the local industry’s insertion in the global value chain: encourage more investment in • Continue to strengthen the sector’s public- training and RD, in order to increase the industry’s private partnership: a sustained increase of the capacity to migrate towards higher value-added industry’s competitiveness will require a coordinated activities. effort by public and private players, among other actions promoting Argentina as an increasingly attractive option • Pursue a balanced development of the sector’s for international manufacturers to locate production local value chain: the surge in automobile facilities. manufacturing should serve as a basis for a strong increase in domestic auto parts production. A closer integration between manufacturers and local auto OUR CHALLENGES ARE YOUR OPPORTUNITIES. parts suppliers has the potential to increase the sector’s competitiveness and encourage technological advances. SOURCES: The trends, data and figures included in this material were elaborated by ProsperAr on the basis of: National Institute of Statistics and Census; CEP; ADEFA; AFAC; López, A. (coord.), “Complementación Productiva en la Industria Automotriz en el Mercosur”, (007); The International Organization of Motor Vehicle Manufacturers; Automotive Forecast, The Economist Intelligence Unit, January 00; and Auto Report 00/007, International Metalworker’s Federation. 1
  12. 12. The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any time, but shall not be responsible for or liable in respect of any such revisions, amendments, alterations or deletions. Photos: courtesy of Basso, Stock Exchange and Flickr under Creative Commons license. 1
  13. 13. Argentina at a glance Country profile Official name República Argentina Capital city Buenos Aires Main cities Córdoba, La Plata, Mar del Plata, Mendoza, Rosario Surface area .7 million square kilometers Population 40. million inhabitants Population growth 1.0% per year Adult literacy rate % Life expectancy at birth 75 years GDP per capita (PPP) US$ 14,41 Currency Argentine peso ($) Form of government Federal Presidential Republic Political division autonomous provinces and the Autonomous City of Buenos Aires Time zone GMT-0:00 Official language Spanish Main Economic Indicators 00 004 005 00 007 00 GDP growth rate (annual %) .% .0% .% .5% .7% 7.0% GDP (PPP) (millions of US$) , 7,041 41,5 4,750 54,140 57,0 GDP (millions of US$) 1,07 15,15 11,7 1, 0, ,50 Exports of goods and services (millions of US$) 4,4 ,4 47,04 54,547 ,0 ,0 Imports of goods and services (millions of US$) 1,7 7,0 4, 41,10 5,5 7,4 Balance of trade of goods and services (millions of US$) 15,1 11,4 1,05 1,47 1,75 15,115 Trade surplus (% of GDP) 1.% 7.% .% .% 4.% 4.% Current account surplus (% of GDP) .4% .1% .% .% .7% .% Primary fiscal surplus (% of GDP) .% .% .7% .5% .% .1% Gross capital formation (% of GDP, constant prices) 14.% 17.7% 1.% 1.% .% .0% Gross national savings (% of GDP, current prices) 1.% 0.% .7% .4% .% .7%E Foreign direct investment (millions of US$) 1,5 4,15 5,5 5,57 ,47 7,7 Exchange rate ($/US$) .5 .4 . .07 .1 .1 Foreign reserves (millions of US$) 14,11 1,4 ,077 ,07 4,17 4, Unemployment rate (% of EAP) 17.% 1.% 11.% 10.% .5% 7.% Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations Conference on Trade and Development (as of April 0, 00). 14
  14. 14. ProsperAr is Argentina’s National Investment Development Agency Our mission is to develop direct foreign and domestic investment to contribute to Argentina’s competitiveness and sustainable development. ProsperAr’s four main objectives are: Provide services to investors ProsperAr provides investors with personalized professional services throughout the investment process, from initial advisory services to investment facilitation and aftercare. The Agency’s team assesses on investment projects, responds to queries from investors and provides key business information. Leveraging the Agency’s cooperative relationships with different government bodies, ProsperAr’s integral services offer investors a unified one-stop support system. Attract and generate investment ProsperAr works in the promotion, attraction and expansion of both domestic and foreign investment. We identify investment and innovation opportunities in high growth sectors, communicating them to national and overseas investors through international missions, conferences, meetings and publications. We work to build relationships that enable multinational companies to take advantage of local, regional and global opportunities. We also encourage domestic firms to expand and develop their businesses. Boost the Investment Environment ProsperAr works to strengthen Argentina’s investment environment. We interact with local and multinational companies, as well as potential investors, identifying and removing possible obstacles to doing business in Argentina. Through active dialogue with the private sector, and in coordination with other government departments, we advocate for the formulation of policies and programs to optimize the investment and innovation environment. Promote the internationalization of local companies ProsperAr promotes the growth and internationalization of Argentine firms. Fostering local vocation for innovation and entrepreneurship and promoting overall competitiveness are key aspects of the Agency’s strategy. Two programs “Entreprenuer Development” and “Pioneers” are in place to strengthen local companies’ critical capacities in different growth phases. ProsperAr also assists international companies to invest in and/or work with their local counterparts to form global joint ventures. ProsperAr is your strategic partner to invest and prosper in Argentina. What ProsperAr can do for you: Provide timely and relevant information on business sectors and geographical locations in Argentina. Help identify investment and innovation opportunities in strategic sectors. Troubleshoot red tape and obstacles; facilitate the investment process and doing business in Argentina. Assist in building partnerships between foreign investors and local companies. 15
  15. 15. To learn more about how investing in AUTOMOTIVE INDUSTRY in Argentina can benefit you, please contact us: +54 11 4328 9510