Auto production in Argentina costs up to 65 percent more than in Brazil and Mexico, a study by Bain & Company said.
Heavy taxes, higher average wages, and an outdated currency policy are some of the restraints that make Argentinian cars more expensive to produce when compared to its Latin American peers.
In Brazil and Mexico, each worker within the automotive industry produces on average 21.2 and 40.2 units, respectively, while in Argentina the figure reaches 18 units.
Additionally, the study found out that for each USD spent on wages, Argentinians pay 53 percent of it in taxes, while Brazilians and Mexicans pay 46 and 27 percent, respectively.
In terms of production costs, producing an auto in Argentina is 25 more expensive than in Brazil and 65 percent more expensive than in Mexico.