El Cronista reports that the Argentinean government has approved an agreement made between local carmakers and auto-parts manufacturers limiting the value of imported auto-parts used to assemble vehicles in the country to 40% of the total value of the vehicle.

According to a market source, the new rule does not mean that Argentinean-made auto-parts will account for 60% of the value of vehicles, as, on average, labour costs account for about half of that figure.

Before the change, the auto-part content was divided between parts made in the Mercosur (60%), including Brazil, and outside the Mercosur (40%).