Three Argentine automakers stopped due to lack of supplies due to floods in Brazil

Three Argentine automakers stopped due to lack of supplies due to floods in Brazil

The automotive General Motors suspended production at the plant Santa Fe due to the problems of supply of inputs from Brazil as a result of the floods in that country. Factory shutdown will occur from May 23 to 31.

The company reported that ”the serious floods that occurred in Brazil have generated complications in the land distribution of productive parts from that country. “This situation will have an impact on our plant in Alvear, province of Santa Fe, which will have to suspend manufacturing activity from May 23 to 31.”

The decision of this automaker is added to that of Fiatin Córdoba, and Peugeot-Citroenin Greater Buenos Aires – both from the Stellantis group – which have been inactive for a week due to the same problem.

The situation occurs in the midst of the drop in sales in recent months that has been aggravated by a series of difficulties that have been dragging on in recent times.

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

The situation in Brazil is very delicate

It must be taken into account that the majority of auto parts used in Argentine plants come from the Mercosur partner. In this context, Fiat reported that it was the first to communicate internally to its production chain that, due to the lack of delivery from Suppliers in southern Brazil – the most affected area – They were forced to suspend production for the rest of last week on both shifts.

The Córdoba-based automotive company had been suspended from activity during the previous week due to input supply problems, although for other reasons. Later, the Palomar plant was added.

The situation in Brazil is so delicate that the Brazilian president, “Lula” da Silva, asked Congress to recognize a situation of public calamity due to the heavy rains and floods that have caused a large number of deaths in the state of Río Grande do Sul, in the extreme south of the country.

Source: Ambito

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