UPDATE:Mexico September Auto Output Falls 23% To 146,295 Units

Mexico's auto production fell 23% in September from the year-ago month to 146,295 units as both exports and local sales posted smaller declines than in preceding months, the Mexican Auto Industry Association, or AMIA, said Monday.

Exports were down 19% from September 2008 to 117,433, while domestic new-car sales fell 24% from a year ago to 58,505 units, AMIA President Eduardo Solis said at a press conference.

The year-on-year declines in auto production and exports have eased in the past three months - a sign that the worst of the crisis affecting Mexico's auto industry is over.

After production and exports plunged by 43% and 42%, respectively, in the first half of the year, production fell 28% in the July-September period while exports slid just 22%.

"September was a better month than we've seen during the rest of the year," Solis said, noting that the data for July and August were positively affected by the U.S. Cash for Clunkers program, which stimulated auto sales in the biggest market for Mexican-made cars.

Still, AMIA maintained its estimate that auto production and exports will end 2009 about 30% lower than last year.

"To close down 30%, we have to have even better months," Solis said. "If we didn't think the next three months would be much better, we would have to lower our outlook."

Mexico's auto output in the first nine months of 2009 tumbled 38% from the year-ago period to 992,153 units. Exports fell 35% to 804,258 vehicles, while domestic sales dropped 30% to 530,163.

-By Paul Kiernan, Dow Jones Newswires; (5255) 5001 5726, [e-mail]