In recent years, the auto parts sector has been suffering a strong fit. According to an AFAC report, about 50 companies closed or left the country between 2009 and 2020.
The problems of economic instability and the decline in the market caused this process of deindustrialization. Added to this is that the lack of productive scale does not make the business sustainable.
The other side is Brazil, which attracts investments and adds companies. With a market five times larger than Argentina and rules of the game that are maintained as governments pass, the neighboring country is attractive for companies to locate.
For this reason, It is increasingly difficult for automotive companies installed in Argentina to increase the national content of parts.
In this context, in the automotive sector there are permanent rumors of foreign auto parts that are considering leaving the Argentine market.
The way to stop trading varies in each case. It may be that you leave the business in the hands of a national company, reach an agreement with a terminal to absorb the structure or, directly, close and leave.
These days, rumors of at least three companies that are in that situation.
The most specific case is that of the French company Faurecia. For some time now, this company has been reducing its presence in the country by transferring some of its divisions.
After this adjustment, its activity was concentrated in two plants. One for seats in the town of El Palomar and another for exhaust pipes in Córdoba.
The seat production operations passed, a few weeks ago, into the hands of the Stellantis Group, which has a plant in that Buenos Aires town where it produces Peugeot and Citroën models. The operation was carried out through the Sudamericana de Plasticos company, recently acquired by the French automotive company.
This purchase is part of the strategy of “verticalizing” the operations of its suppliers. It consists of acquiring auto parts companies that, until then, sold them products. Experts on the subject explain that they are copying the “Toyota system”
Meanwhile, a buyer is being sought for the exhaust pipe operations through a consulting firm.
Another case that is pointed out in the sector as a possible departure from the country is the American company Lear, which produces cable harnesses and is based in San Francisco, Córdoba.
Some sources maintain that Stellantis would also be behind this company. It must be taken into account that the other plant of this automotive group is in that province, where it produces the Fiat Cronos.
Also in this dance of names of auto parts that are rethinking their presence in Argentina would be the French company Plastic Omnium, which manufactures bumpers.
«This issue of the departure of foreign auto parts from the country is not new. It comes from more than ten years. With such unstable demand and the country’s rule changes, companies are tired of Argentina and want to reduce their exposure. Added to this is that Brazil encourages the arrival of companies,” explained a manager of an automotive company.
Source: Ambito
