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Argentina Auto Makers Raise Oct Output;Still Down On Year-Adefa

BUENOS AIRES -(Dow Jones)- Argentina manufactured 57,439 cars in October, up 5% on the month, but down 1.1% on the year, the automobile maker association, Adefa, reported Wednesday.

While production has rebounded over the past two months, output so far this year is still down sharply on the year.

Between January and October, Argentina produced 403,279 cars, down 23.6% from the same period a year earlier.

Automobile exports in October reached 36,814, down 5.8% on the year and down 0.8% on the month.

Exports have been hit hard so far this year, with just 248,599 cars shipped between January and October. That's down 19% from the same period a year earlier, Adefa said.

Brazil continues to be the main market for Argentine car exports, buying 89.3% of all exports so far this year.

Earlier Wednesday, the automobile concession association, Acara, said that sales of new cars were weak in October.

New car sales in October totaled just 40,109, down a steep 21% on the year and 13% lower on the month, according to Acara.

Sales have fallen sharply this year due to the international financial crisis and weak local demand. During the first 10 months of the year, 454,292 new cars were sold, down 18% on the year.

Despite the weak sales, Acara is still expecting to meet its sales target of 500,000 automobiles sold in 2008, the sector's third best year on record.

-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@ dowjones.com

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  11-04-091703ET
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