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Fiat Argentina Suspends Production

Published 10/27/2022, 07:15 AM
Updated 10/27/2022, 07:25 AM
© Reuters.  Fiat Argentina Suspends Production

By Michael Elkins 

Stellantis (NYSE:STLA) group-owned Fiat was forced to suspend production at their plant in the Argentine province of Córdoba due to the lack of imported inputs. The company is one of many that are suffering due to restrictions on access to US dollars as Superminister Sergio Massa seeks to keep all hard currency from leaving the country.

Since the administration of President Alberto Fernández announced a new policy for processing imports last week, problems like Fiat's are becoming commonplace.

Activity is expected to return to normal Thursday but there are no assurances on the arrival of specific parts already in the country but still to be released through Customs.

This latest interruption follows just weeks after Board President, Martín Zuppi announced that the company would close out the year with a production number reaching 83 thousand Cronos.

"This year we are going to close with a production of 83 thousand Cronos, of which 58% is exported to Brazil. For next year, the idea is to reach 100,000 units," said Martín Zuppi during a celebration of the 250 thousand Cronos produced at the plant.

It also follows a recent labor conflict that affected local tire manufacturers. A conflict that saw Fiat just 10 days short of halting production.

Shares of STLA are down 0.51% in pre-market trading on Thursday.

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