At the request of car manufacturers, the government has increased the export refunds of vehicles

The government increased again to 6.5 the car tax refund percentage who export vehicles to Mercosur member countries. Thus, reversed with the measure announced in August, which reduced yields to 2%.

Last year, the Association of Automobile Plants (Adefa) warned the government against the negative consequences of this reduction for the Argentine industry. Meeting with the Minister of Production, Dante Sica, Terminal Managers They predicted problems in the short, medium and long term.

"We are working on this dialogue-based measure that we have with the sector and with the different representatives of the whole value chain, "Sica admitted through an official statement from the Ministry of Production.

The decision relieves the affected auto companies: in the first quarter, the sale of 0 km fell by 50%, Domestic production collapsed by 31.6% and exports, despite the recovery of the Brazilian market (main buyer of Argentine cars), fell by 11.4%.

From this increase, the government estimates that the measure published today in the Official Journal (Decree No. 338/2019) will reverse the export crisis that runs through the national auto industry. According to Production, 70% of Argentine cars exported (60% of total production) go to destinations in Mercosur.

"We hope that the unification of the withdrawals will recover the dynamism of the level of exports and motorized an increase in production units scheduled for 2019, "said the Minister of Production.

For his part, the Secretary of Industry, Fernando Grbado, said: "It is a very important decision for resuming the expected price on which the sector had made investments in recent years"

Currently there is four major investments underway in domestic factories: Volkswagen US $ 650 million for its Pacheco industrial division, US $ 500 million for General Motors (General Alvear, Santa Fe), US $ 320 million for PSA Group (El Palomar) and US $ 150 million from Mercedes-Benz (Virrey del Pino, La Matanza).