“GM Argentina reports that it has made partial progress with its suppliers whose payments abroad remain delayed. However, the company is able to resume industrial production at its plant in Alvear, province of Santa Fe, as of October 30. “GM reiterates its commitment to economic and industrial growth with added value for the country,” the company reported.
The cause of the production interruption was decided on October 10 as a result of Several foreign suppliers cut off shipments of inputs to Argentina due to non-payment by the local subsidiary of the automotive company as a result of the restrictions on access to dollars that the Government established. During this time, some 1,300 workers were suspended since October 10 and received partial salaries.
This is a problem that affects all importers who were forced to postpone payments abroad due to not being able to have dollars in a timely manner with foreign currency.
The automotive and auto parts sector is one of the most affected since it must finance its imports for terms of 180 to 360 days. This causes a debt of more than US$6,000 million with suppliers and parent companies.
In recent days, for example, the security system was not operational. Single Current Account for Foreign Trade (CCUCE), so most companies could not pay their international suppliers, which aggravated the problem and other cases such as that of General Motors could appear.
International suppliers had been anticipating that the supply of products would be cut off due to non-payment, but so far there had not been an interruption of shipments of such magnitude that it would force a terminal to stop activity for two weeks.
The Tracker and Cruze models are produced at the factory on the outskirts of Rosario. This last vehicle is at the end of its life cycle and before the end of the year it will definitely leave the assembly line, as announced Ambit.
The decision of the American automaker joins other stops made by other terminals for different reasons.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
