As the prospects for the Brazilian automotive industry remain negative, Argentina, a key partner for Brazil’s auto segment, is also experiencing the impact of a stagnant market.
As demand for autos in Brazil have declined in the past few months, Argentina has started to feel the impact of a slow demand for auto exports.
Fiat Chrysler Automobiles (FCA) Group has announced it will partially suspend car output for nine days in September at its plant in the city of Cordoba.
According to a media report, FCA is expected to decline auto production to 4,300 units in September, from 5,750 in August, due to the bearish prospects seen in the Brazilian automotive market.
Likewise, GM halted auto production for two days in the end of August and will temporarily lay off 170 workers at its plant in the city of General Pacheco, in the greater Buenos Aires area. Volkswagen is reportedly to have partially suspended a production line that supplies Brazil for two days by the end of August at its plant in Cordoba.
According to a media report, FCA is currently adopting reduced shifts for its employees, who work for days in a week and three days in another week, as a way to compensate the low demand for autos.