BUENOS AIRES (Bloomberg) -- Renault is cutting back on shifts at its plant in Cordoba, Argentina, after a drop in sales prompted by slowing demand in neighboring Brazil.
Argentina's auto industry has been hit by a drop in demand from Brazil, the country's biggest trading partner.
Vehicle exports fell 46 percent in May from a year earlier, according to a June 5 statement by the Argentine Automakers Association. Domestic sales of vehicles slid by 15 percent over the same period, while output dropped 24 percent.
Renault is halting two production shifts today and on June 15 after canceling a shift on Thursday in part because of falling sales, according to an official at the company who isn't authorized to speak publicly.
South America's second-biggest economy will expand 2 percent this year, according to Boris Segura, a Latin America analyst at Nomura Holdings.
Segura cut his earlier forecast of 3 percent because of import restrictions and lower investments. That would be the weakest growth since a 0.9 percent expansion in 2009.