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Volkswagen postpones the restart of its production due to foreign supplier debt

Volkswagen postpones the restart of its production due to foreign supplier debt

The automotive Volkswagen will postpone the restart of production for a week at their plant General Pacheco, within the framework of the difficulties of companies to carry out payments to suppliers of the outside, that have been affecting them since all of 2023.

The terminal had communicated to its auto parts who would return to activity next Monday March 4after having stop the plant since the end of December, although it has now extended the factory stoppage for another week. This is because it follows negotiating with local suppliers so they can pay foreign suppliers and restore supply flow.

The problem broke out last year when the then Minister of Economy Sergio Massatold the automakers that, given the lack of foreign currencycompanies had to finance your own imports of parts and 0km with the promise that, within a certain period, the central bank I was going to free them dollars at the official exchange rate. This caused local terminals and auto parts to they will go into debt with parent companies and suppliers for an amount greater than US$8,000 million.

The previous Government did not comply with payment deadlines and the electoral defeat of Union for the Homeland left a critical scenario.

Given the lack of payment abroad, international suppliers began to cut merchandise shipments and the plants began to perform constant stops due to lack of supplies. This is how the end of the year was reached, with the relief generated by the start of vacation.

VOLKSWAGEN

Volkswagen faces difficulties in continuing production.

NA/AFP

The panorama for production in the different automotive companies

The president of toyota, Gustavo Salinasacknowledged days ago that they had reached the end of the year without knowing if when they returned from the summer break they would be able to produce again for this reason.

Although this terminal was able to do it, for the return from the summer break it worsened the problems. General Motors, Volkswagen, Nissan and Renault announced that they would not return to production because they had parts supply problemsboth the terminals and their local suppliers that manufacture auto parts.

Upon assuming, the Government of Javier Milei implemented a bonus (Bopreal) to go canceling foreign debt within four years. At the same time, he established a new import systemthat released the restrictionsmore a Payment scheme for new imports that is being met.

“Luckily, now the situation has normalized and we are able to import”he added Salinas.

toyota –the main Argentine manufacturer in the sector- was one of the automotive companies that joined the Bopreal for a significant amount of the debt it has abroad. Beyond the decision of Volkswagenthe situation is complicated in the other terminals.

The plant Cordova of renault –where the Nissan pickup is also produced– returned to production in recent days very conditioned by the problem of supplier debt. It is working irregular by difficulties of local suppliers for payments abroad and shortage of some raw materials.

General Motors will return to activity from Marchafter two months stoppagealthough the manufacturing rate that it will maintain from then on is not reported.

Volkswagen I planned to return in a single production shift, instead of the two with which they ended the year, and on a rotating basis for the staff. While one shift works, the other would be suspended and, supposedly after 15 days, the situation would be reversed.

These cases continue to be affected by the problem of foreign debt since international suppliers, in many cases, they refuse to restart shipments by non-payment.

“The most serious problem remains the foreign debt that remained from the previous Government. Some problems were solved, for direct intervention of the terminals with their auto partsbut they remain delicate cases that make the activity not normalized,” he explained to Ambit a manager of an automobile company.

Source: Ambito

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