General Motors to halt production in Argentina for 4 days in Sept

BUENOS AIRES Aug 31 U.S. carmaker General
Motors Co will halt its production line in Argentina for
four days during September due to weak demand from Brazil, the
main buyer of Argentine-made vehicles, a company spokesman said
on Monday.

The reduced output spells more trouble for Argentina's auto
industry, which is battling a slump in orders from recession-hit
Brazil and struggles to import parts because of a squeeze on
dollars in Latin America's No. 3 economy.

"GM has decided to suspend production for four days during
the month of September," GM said in a statement. "The objective
is to adjust to Brazil's current demand."

GM is not the first carmaker operating in Argentina to
reduce production runs or scaleback workers' shifts. Other
manufacturers, including factories assembling electronic goods,
have been hurt by the dollar shortage.

Car production in Argentina fell 8.3 percent in July
compared with the same month a year earlier, and 16.4 percent
against June, the ADEFA association of vehicle makers said. July
vehicle exports fell 9.4 percent on the previous year.

Car makers operating in Argentina include Ford Motor Co
, Honda Motor Co Ltd, Toyota Motor Corp,
Volkswagen AG, Peugeot SA and Fiat
Chrysler Automobiles.

(Reporting by Richard Lough; Editing by Lisa Shumaker)

Leave a Reply