Automotive industry suppliers migrating from Argentina to Brazil
Besides chemicals firm BASF and paint and coating manufacturer Axalta – producers of automobile paints and resins – announcing plans earlier this month, France-based vehicle windshield supplier Saint-Gobain Sekurit has recently signed a resignation agreement with 150 employees, Brazilian news service Veja reported.
Although part of the volumes produced for the OEM market in Argentina are being temporarily transferred to Brazil, the company intends to continue operating in Argentina to serve the aftermarket industry, the French firm said.
Operations will continue at its unit located in the city of Tortuguitas in the Buenos Aires metropolitan area.
Argentina auto market
With inflation and interest rising well into double digits and its currency weakening significantly last year, Latin America’s third largest automobile market took a major hit in 2019. While car and light commercial vehicle (LCV) production was down 33% year-over-year, dealership sales dropped 45% and exports slid 17%.