Buenos Aires - The ongoing global financial crisis has reached the Argentine car industry, with Renault's local branch on Friday suspending 1,000 workers for 10 days.

After sales fell in October, for the first in five years, the press spokesman for the Argentine Mechanics' Union SMATA, Leonardo Almada, noted that the move is set to affect "practically the whole" Renault plant in the central city of Cordoba.

Workers were to obtain 70 per cent of their regular salaries during the suspension.

Renault had already cut short 350 temporary contracts in recent days.

In October, General Motors announced its decision to fire 500 workers in Argentina, although it eventually backtracked after the intervention of the government of the central province of Santa Fe.

Manufacturers of components were also suspending workers. Gestamp, which supplies Fiat and Volkswagen in Argentina, was set to suspend 215 workers.

Volkswagen suspended 368 temporary workers who are usually active on weekends and public holidays, while Fiat launched the holiday period earlier than usual.

The fall in Brazilian demand - its main market - was severely affecting the Argentine motor industry.

In October, 48,019 vehicles were sold, 3.9 per cent fewer than in the same month last year and 9.7 per cent fewer than on the previous month.

Automakers provide jobs for some 62,000 people in Argentina, and it remained unclear whether the country's car industry would be able to meet its goal of producing 600,000 vehicles this year. (dpa)