Due to floods in Brazil, Fiat paralyzes production in Córdoba due to lack of inputs

Due to floods in Brazil, Fiat paralyzes production in Córdoba due to lack of inputs

Amid falling sales, production and exports For different reasons, the Automotive industry He keeps receiving bad news.

To the problems due to the obstacles to importing inputs that they suffered throughout last year, the debt that was outstanding from the previous government – ​​which caused several factories to suspend production – and the negative impact for the sector that caused the devaluation that the management applied. of Javier Milei, Now one more concern is added: the floods in Brazil.

The situation in that country is very delicate and is beginning to affect the supply of parts to local terminals. It must be taken into account that the majority of auto parts used in Argentine plants come from the partner of the Mercosur.

Fiat confirmed the suspension of production for the rest of the week

In this context, Fiat yesterday communicated internally to its production chain that, due to the lack of delivery of Suppliers from southern Brazil – the most affected area – were forced to suspend production for the rest of the week on both shifts.

Likewise, the communication clarified that an updated production plan will be sent today.

The automaker based in Cordova It comes from a suspension of activity, during the last week, due to problems with the supply of inputs, although for other reasons.

The situation in Brazil is so delicate that the Brazilian president, “Lula” da Silvaasked yesterday Congress to recognize a situation of public calamity due to the heavy rains and floods that have caused the death of at least 85 people in the state of Rio Grande do Sulin the extreme south of the country.

Floods in Brazil restricted activities

Floods have destroyed roads and bridges in several cities, causing landslides and leaving a trail of destruction.

At the moment, only the terminal that produces the model Cronus is the one affected, although it is not ruled out that other factories will have to restrict activity.

The decision of Fiat It was taken in parallel with the dissemination of data on the level of activity in the sector last month.

Automotive terminals produced 42,974 units in April, 0.4% below March volume and 21% less compared to 54,399 units that occurred in April of last year, according to the report prepared by the association that brings together the terminals (ADEFA).

In the accumulated of the first quarter of 2024, the terminals produced 146,267 passenger and utility vehiclesa 22.6% less regarding the 188,973 units which produced in the same period of 2023.

The report indicates that the volume of vehicles exported during the fourth month of the year was 20,611 unitswhich resulted in a drop of 12.2% compared to March and 32.9% less when compared to the same month in 2023.

In the accumulated from January to Aprilthe terminals exported 82,981 units, 15.7% less compared to shipments registered in the same period last year.

Source: Ambito

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