Inflation in Argentina worries Toyota

April 3, 2008

toyota-argentina.jpgHigh inflation in Argentina is “worrying” Toyota’s local unit but the company is optimistic that concerns over energy shortages will ease in the medium term, said the firm’s president.

Investors are concerned about inflation and energy shortages in Argentina, where the red-hot economy has grown 8 percent a year for five years straight after a 2001-02 economic crisis.

“For us, inflation is a worrying issue,” said Anibal Borderes, president of Toyota Argentina, the local affiliate of Toyota Motor Co. ”I think it could be a key factor for anyone looking to export,” he told the Reuters Latin America Investment Summit in Buenos Aires.

  “Energy supplies worry us too, but … there are plans in place to increase supplies and I expect they will begin to show results,” he said, referring to government energy initiatives.

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