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)

And you thought Red Bull gave you wings. Spaniards smuggled 800 kilos in this vehicle.

And you thought Red Bull gave you wings. Spanish drug dealers smuggled 800 kilos in this vehicle.

While some stories hit on one or two of InvestBA’s main content categories, sometimes we unearth a gem that covers all the bases: Trade, Foreign Investment, Buenos Aires Events, Entrepreneurs, oh and Narcotrafficking (Still not an official Category). The Argentina/Chile Dakar Rally kicked off in BA back in January, and the event was a major success for the second consecutive year. What has come to light recently is a massive drug deal that some Spanish traffickers had been plotting for over a year, according to INTERPOL. The cartel used the Rally as a front for shipping a Mercedes-Benz truck emblazoned with fake Dakar and Red Bull logos to BA, driving it to a private residence in a high-end neighborhood, hiding 814 kilos of cocaine in a sub-floor of the vehicle and shipping the truck back to Spain. While traveling in Argentina, the drug runners donned Dakar t-shirts and even posed for pictures with locals on the highway. When the truck arrived in Spain, it was driven through a high-tech scanner in the Port of Bilbao and the drugs were discovered. Local authorities say the dealers (7 in custody, one in exile in Chile) invested over US$500,000 in the elaborate scheme, but they stood to reap US$32 million selling the drugs in Europe or possibly 2-3x that amount if the product was moved successfully to Asia. According to Havocscope, the black market online database, the kilos could have fetched upwards of $88,000 in Japan or $146,000 in Australia. Here in Argentina, the bust is being referred to as Operation White Dakar. While Dakar returns to BA in 2011, still no confirmation if the Spaniards will be back next year for another try. (YouTube video)

Tagged with:
 
Starbucks at the Alto Palermo Galleria

Starbucks at the Alto Palermo Galleria

From Mercedes-Benz to American Express to McDonald’s, Argentines have long had an appetite for killer brands, so it was only logical that Starbucks finally made the foray into Buenos Aires. The Seattle-based coffee giant opened its first BA coffeehouse in the trendyAlto Palermo shopping center in May 2008, and the local chain now consists of four locations in Downtown, Palermo and Belgrano. In addition to free WiFi and relaxing environments, company officials even added dulce de leche and yerba mate items to the local menu in a show of respect for porteño palettes. In keeping with their track record of corporate responsibility, Starbucks announced an alliance with FNDF, a Palermo-based organization that provides support and resources for local children with cancer.

Tagged with:
 
© 2010 InvestBA.com