American automobile manufacturer General Motors (GM) will temporarily paralyze production at one of its plants in Argentina due to the lack of inputs due to import obstacles in the South American country.
The company reported that, from March 28 to April 14, it will suspend production at its Alvear plant, in the central province of Santa Fe, “due to problems with the supply of parts from suppliers affected by payments abroad.”
G.M. It had already taken a similar measure between the end of December and the beginning of March at that plant, where the Chevrolet Tracker SUV model is manufactured.
The lack of parts for cars is due to suppliers’ problems importing due to the lack of foreign currency in the South American country.
Even though the Government of Javier Milei has sought to regularize the debts of importers with their suppliers abroad and has relaxed import restrictions, the inconveniences persist.
This is not the only problem facing the automotive sector, one of Argentina’s main industrial activities.
The terminals are facing a significant contraction in demand, in a context of a general decline in economic activity, very high inflation and loss of household purchasing power, a combination of factors that is hitting consumption.
According to data from the Association of Automotive Factories, vehicle sales from terminals to dealers accumulated a drop of 5.9% in the first two months, while car production plummeted 18.2% in the same period and exports they grew 10.1%.
In this scenario, local media reported that the Japanese Toyota plans to launch a proposal for voluntary retirements to reduce its workforce by 400 workers.
Company sources consulted by EFE said that at the moment they will not comment on the matter.
Source: Gestion
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