Stories of overcoming in times of economic crisis serve as inspiration for entrepreneurs who are just starting their businesses.
The numerous economic crises that Argentina had to go through were devastating for the functioning of the country. Not only politically and in its international relations, but also in the workers’ pockets. Many family businesses were forced to close their businesses at not being able to face debts.
The hyperinflation of 1989followed by the crisis of 2001 A few years later, they almost destroyed all of the work of Diego Mirmelsteinimportant auto parts businessman and owner of DM Distribuidora and the LOMAPLAST auto parts factory. Despite monetary problems, a terrible fire and the loss of his savings, was able to get ahead fighting and with the help of their loved ones.
Hyperinflation
The Argentine hyperinflation of 1989 began on February 6 when the Central Bank of the Argentine Republic (BCRA) ran out of foreign currency reserves to auction the demand for US dollars. This caused a strong devaluation of the austral, the Argentine currency at that time, and a spiral of increases in interest rates and fiscal deficit. The economic situation worsened with exchange and bank runs, which led to the resignation of President Raúl Alfonsín.
During the government of Carlos Menemthe Bonex Plan in December 1989, which converted fixed-term deposits into government bonds. This measure, although it attempted to curb inflation, seriously affected savers and to the middle class, who saw their savings drastically devalued. In this context, Mirmelstein confesses that he had to use every corner of his house as a storage and sell used auto parts to get ahead.
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Reuters
Crisis of 2001 and a personal tragedy
with the passage of time, the Convertibility Law and the possibility of importing products in a simple and cheaper way than before, the family business embarked to China and began to bring merchandise from there, and the numbers were green again. The economic crisis of 2001 that Argentina went through affected them and hurt your savingsbut thanks to constant income through the distribution business, they were able to sustain themselves. However, one tragedy It would reduce all his effort to ashes.
A fire produced by a spark from a repair that was being carried out on the roof of the warehouse would set the business back many faces. Diego was in Córdoba and the company’s custodian calls him to give him the news. He even said in interviews that the factory was disabledand they could not supply DM or comply with international commitments.
Mirmelstein’s revival
Despite the blow suffered, The LOMAPLAST team did not give up. They rallied their staff and assured them that no one would lose their job, although the challenges didn’t end there. While rebuilding the factory, they were scammed by a construction company and abandoned by the banks. However, they never gave up. With effort and perseverance, they resurfaced. They opened a warehouse in Sao Paulo, Braziland began exporting bumpers to destinations as far away as Iran and Serbia.
Today, DM has established itself as the largest auto parts distributor in Argentinawhile LOMAPLAST became the largest manufacturer of bumpers in Latin America. With a production plant in Brazil and more than 50 models in their production line, both companies employ more than 400 people and They export to 22 countries.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
