“This law rewards with fiscal incentives, with tax reductions, to the entire automotive sector, auto parts companies to the extent that it generates employment,” explained the Minister of Economy, Serge Massa, in an act that took place at the Ford Argentina plant.
“The more employment is generated, the less taxes are paid, the more exports are generated, the lower levels of taxes are paid,” he added and estimated that with more investments, more units of the 190,000 that will be sold to the world this year can be exported in 2023. and produce 70% more than in 2019, prior to the pandemic.
Argentina seeks to increase its exports to strengthen the international reserves of the central bank and to be able to satisfy the demand for imported inputs that the industry needs to sustain the recovery of the economy.
Martin Galdeano, President of Ford Argentina and the Association of Automotive Manufacturers, said that the industry exports 60% of its production, which makes it the second largest export complex in the country.
“The automotive sector is intensive in long-term capital investment,” explained the businessman. “The law establishes a regulatory and tax framework that creates favorable conditions for investment, production and employment,” he added.
In the first eight months of the year, the 13 automotive factories in the country increased their production by 29.5% compared to the same period in 2021 and exports by 25.3%, according to ADEFA data.
Source: Ambito
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