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European Luxury Imports Booming in BA

On May 10, 2010, In foreign investment, lifestyle, by InvestBA
Mercedes-Benz Argentina

Automakers like Mercedes-Benz are benefiting from a luxury consumption boom in Argentina.

If March sales figures were any indication, 2010 will be a very good year for European luxury automakers exporting to Argentina. According to iProfesional; Audi, BMW, Mercedes-Benz and Porsche all posted double or triple-digit gains in units sold compared to March 2009. Several factors are contributing to the current boom: the falling Euro, pent-up demand after automakers slashed production and exports in ‘09 and the introduction of several new luxury models in Argentina like the Audi A5 Sportback and the BMW 5-Series Gran Turismo. BMW posted the largest gain with a 142% increase in units sold; 44% of those were 300 series models. Porsche was second with a 100% increase in units sold, while Audi posted a 52% increase. Of the four main European luxury brands, Mercedes-Benz sold the most units (588) in March. And local analysts say the boom-de-lujo is not limited to autos; high-end consumer demand for fine watches, jewelry and whiskeys is also strong thanks in large part to the strength of the Brazilian economy which is being described as an umbrella for Argentine companies posting record exports of cars, appliances and textiles to consumption-minded Brazil. Inflation has also forced the hand of Argentine retailers who are offering attractive, peso-denominated payment plans on goods once reserved for the upper class like large-screen LCD televisions. iProfesional also credits the European automakers for offering attractive financing plans like BMW’s four-year, 0% interest plan and bringing entry-level model prices down to around US$30,000.  (Full article)

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Messi Was Rich, China Makes Him Riich(er)

On April 23, 2010, In foreign investment, franchises, lifestyle, by InvestBA
Lionel Messi and the Chery Riich

The World Is Flat: An Argentine playing in Spain selling Chinese luxury cars sold on six continents.

Argentina and China may be having a spat over trade and tariffs, but one Chinese company is banking on Argentina’s #1 export to help sell some minivans. China-based automaker Chery International is rolling out a new MPV called the Riich, and the company chose Lionel Messi to be the face of the vehicle roll-out. Besides making an intriguing global marketing case study, the selection of an Argentine who plays in Spain for a Chinese car sold on six continents also demonstrates the growing appeal of the worlds’ greatest soccer player. “Messi is the best football player in the world,” said Chery’s Jin Yibo, “and thus he makes a great ambassador to represent our premium Riich brand.” The announcement was made yesterday during the vehicle’s unveiling at the Beijing Auto Show. While automakers are struggling in other corners of the world, Chinese producers posted a whopping 45% gain in sales last year to 13.6 million vehicles, and analysts predict another double-digit gain this year fueled by government incentives, lower borrowing costs and the added cachet of celebrity endorsers like Messi. “It’s a smart move,” said Shanghai analyst Liu Lixi, “because those unfamiliar with Chinese cars need a famous ambassador to develop an initial interest.” Now whether or not Messi will be caught on the streets of Barcelona in a Mommy wagon remains to be seen. Just as Tiger Woods was rarely spotted in the Buicks he once endorsed, Messi is unlikely to part ways with his Q7.

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Ford, JWT Bring Drama & Trucks to the Masses

On March 19, 2010, In arts & entertainment, creative class, culture, us companies, visionaries, by InvestBA

Ford Y Yo: Ford & JWT tapped local talent and tales in launching the new Ranger.

Ranger Y Yo: Ford & JWT tapped local legends and creative talent in launching the new Ranger in BA.

Borges…Cortázar…Ranger? Lovers of Latin American literature know Argentina has a rich tradition of magic realism. The literary style which draws heavily upon fables and myths to highlight the magical in contemporary society exploded in the 1960’s and continues to inspire young writers today…often in places where you least expect it.  Take for example this story from AdAge of Ford’s new truck roll-out in Argentina. Yes, everyone agreed, the 2010 Ranger is a fine truck, but the new model didn’t really have head-turning upgrades over last year’s model. So Ford turned to its agency, JWT, who in turn created a campaign that solicited countryside fables from citizens in BA, narrowed the entries down from 1,000 to 3 and selected tree different playwrights to create original, 25-minute plays. Expensive? Yes. Time-consuming? Yes. A brilliant way to connect with your customers, broaden your base of potential buyers and bring cultural stimulation to the masses.? Yes, yes and yes. The traveling production, which played four different cities in BA province and drew large crowds hand-picked by local dealers, has been so popular that, according to Marketing Director Ricardo Flaminni “local mayors have contacted Ford and asked if the dramas can come to their towns, too.”  So how does the play end? The bottom line focus for Ford is ultimately regaining market share in Argentina’s competitive truck space, but the value of what they and JWT created and gave back to the masses can never be captured in a PowerPoint. Bravo!

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Argentina Auto Production Grows 170%

On March 5, 2010, In foreign investment, us companies, by InvestBA
Argentina auto production jumped 170% in February compared to the year prior. (Source: ADEFA)

Argentina auto production jumped 170% in February compared to Feb'09. (Source: ADEFA)

Another positive sign of economic recovery for both Argentina and several export destination countries based on data released yesterday by the Argentina Association of Auto Manufacturers (ADEFA). The Association is reporting a 170% increase in auto production for February 2010 compared to the previous year, or approximately 40,000 units compared to 14,900 units in February 2009. Last month’s robust auto production figures also represent a 27% increase over January 2010, according to Clarín. Argentina’s auto exports boasted similar triple-digit gains with a 171% increase in February 2010 vs. February 2009. February exports to Brazil—historically the largest importer of vehicles manufactured in Argentina (87% per ADEFA)—jumped 185% compared to last February. The top three countries or regions posting the largest year-over-year increases in autos imported from Argentina were Asia (473%), Europe (838%), and South Africa (which must currently be importing enough new cars to accommodate every player, journalist and foreign visitor for the upcoming World Cup…19,200%). While exports are obviously booming, domestic auto sales at Argentina dealerships this February grew a more moderate 49% compared to last February. In terms of total production, the Top 5 manufacturers are GM Argentina, Ford Argentina, Fiat Argentina, Peugeot-Citroen and Renault Argentina. (Production by Make Pie Chart).

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