BMI has become increasingly bearish on Argentina's automotives sales and production outlook. Over the first three quarters of 2012, vehicle sales in Argentina declined 6% year-on-year (y-o-y), to 603,745 units. In the month of September, sales declined sharply, and this has driven down the year-to-date total. We believe that such large declines are unlikely to be repeated in the remainder of the year. BMI forecasts a 3% decline in this segment in 2012, predicated on our view of continued weakness in consumer sentiment due to high inflation and unemployment levels. We maintain this forecast for now, although we caution that ongoing downward pressures on consumer sentiment may prompt us to adopt a more bearish view on sales.