55% Inflation. New Era Of Honesty???

[germano]

You are correct, the new Classic and the Celta are just developments of the Corsa B platform. It is my understand that both the late generation Unos and Corsas have a new fuel injection system that made them fully compliant with the PROCONVE L-6, which is equivalent in requirements to the European emission standards 5 for petrol engines. But again, in terms of road safety, both cars are death traps.

I read an article a while back about that class of cars (Celta, Corsa, Gol Power, Ka, Uno, ...) and their crash test ratings - and from what I remember only the Gol Power (that VW took off the market) was a little better. The rest had all terrible results. Can't find the article and the NCAP site does not have results for the Gol Power http://www.latinncap.com/en/results/
Things should improve a little with new regulations requiring double airbags for new cars. Also the Up looks promising with 5 stars.

 

[camberiu]

I read an article a while back about that class of cars (Celta, Corsa, Gol Power, Ka, Uno, ...) and their crash test ratings - and from what I remember only the Gol Power (that VW took off the market) was a little better. The rest had all terrible results. Can't find the article and the NCAP site does not have results for the Gol Power http://www.latinncap.com/en/results/
Things should improve a little with new regulations requiring double airbags for new cars. Also the Up looks promising with 5 stars.

Yes, all the small cars in the Mercosul market have dreadful safety rankings. Due to heavy taxes, the manufacturer cuts costs elsewhere in order to make the car affordable. Usually the cuts happen in the security features and the quality of the frame and body of the vehicle.

 

[Jaredberryman]

I was under the impression that the new tax does not apply to the cheapest cars. Or have they changed it again?

No, but they added other taxes that effect all the models. There was a 1 to 2 percent tax they added, and the other big taxes also made all the other models go up. Not sure why the big taxes did that, but for some reason they had that effect.

 

[Reneige]

On the topic of the government's motivations for honestly reporting the inflation rate, I believe it is all within the policy shift towards an attempting to mend ties with investors. This government had originally rejected payments to the "Paris Club" of investors/speculators, as well as to Repsol for the nationalisation/expropriation of YPF. The government realises that it will never be able to develop its energy industry without tens of billions of dollars per year from investors. That is why it changed its policy on those two issues. Also, there is a very real possibility that Argentina may need to seek assistance from the IMF if foreign reserve depletion continues. The IMF had threatened to suspend Argentina's membership if it did not improve inflation reporting.

 

[Rich One]

What about CER bondholders that were paid according to the inflation rate in the last 10 years? They got cheated big time by the government reporting only a 1% inflation according to INDEC figures Should they be compensated by Moreno. Who was lying?

 

[nicoenarg]

Germano, I think cars have gotten a lot more expensive because of all the taxes that have recently been added to car purchases. So they have definitely had inflation, but also new taxes that the government just recently put on the cars that caused a massive uptick in the price.

I don't think it's unreasonable to assume 50 percent inflation this year, but no one will be able to accurately predict what will happen this year. I doubt it will be lower than 30, but we'll see.

A couple of days after the devaluation, Gol went up 30% or so. There are a lot of things at play. Dealerships that sell both "more" expensive cars and regular ones also raised prices of regular cars to cover losses from the non-sale of more expensive cars due to the tax.

The analysts who were predicting 30-35% inflation were also basing that on the official dollar being worth 8 pesos by the end of 2014. We all know that went out the window last month.

50% is a safe bet. But miracles do happen, so we'll see. (EDIT: The miracle would be some economic sanity...)

 

[wild_horses]

Hi,

Very interesting article,

http://www.lanacion.com.ar/1665345-bancos-consultoras-y-la-uia-estiman-para-este-ano-una-recesion-con-inflacion-de-35

B)

 

[wild_horses]

But again,

What does this people know, they should seek economic advice on BAexpats.

Cheers!

 

[Dublin2BuenosAires]

Pretty bleak outlook in that article all told. Maybe you're reading it differently.

Stagnant growth of less than 1% with inflation of 35%.

Break out the champagne?

 

[wild_horses]

Hi,

The issue here is inflation, not economic growth. If you want to discuss about economic growth, you should open a new thread.

That is a typical attitude of someone that does not want to lose an argument and tries to divert attention from the original point.

Inflation this year: 30-35%

Was I wrong? Time will tell.

Cheers!