Argentina trying out government auto aid as well

Taking a page from the United States, the Argentinian government is now making an effort to assist its auto industry as well in money for a bailout. From CNNMoney.com:

Argentina's auto industry will get a 3.1 billion peso ($900 million) boost with cut-rate loans for first-time new car buyers, the government said Saturday.

Production Minister Deborah Giorgi's announcement detailed a key part of a broader economic stimulus package based largely on assets of the recently nationalized pension system.

Giorgi told a news conference that six automakers will each offer two models selling for $10,000 or less for people buying a new car for the first time.

The industry suffered heavy sales declines in November, and for the exchange of this auto aid, car makers will have to basically stave off any layoffs and and hold down the profit gains on the cars that are specifically sold through this program.

This certainly sounds like a feasible idea and puts responsibility on both the government for their assistance and the companies in terms of accountability. I hope it works!

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Argentina trying out government auto aid as well

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