Renault’s unit in Argentina is reportedly cutting shifts at its plant in Cordoba plant after a drop in sales prompted by slowing demand in neighboring Brazil.
The announcement comes just after days after rival General Motors said on Wednesday it offered a buyout plan for workers at a Brazilian factory after automakers in the country scaled back output in May to the slowest in three months, idling factory lines to draw down massive inventories.
New car sales in Brazil in May fell almost 10 per cent compared with a year earlier, as defaults on car loans and a scarcity of credit weighed on the sector, according to figures from the Fenabrave car dealership association.
The Argentine auto industry has been hit by a drop in demand from Brazil, the country’s biggest trading partner. Vehicle exports fell 46 percent in May from a year earlier, according to a June 5 statement by the Argentine Automakers Association.
Argentina’s continuing troubles with commodity exports, falling exports of other raw materials, automobiles and other industrial goods are pushing the country toward recession, new economic data indicated.
Research by Torcuato Di Tella University in Buenos Aires cited “strong symptoms” of an economic slowdown that, combined with other data, showed falling demand building recessionary pressures.