Overview
- Stellantis' South America chief Herlander Zola told Brazilian media this week that the company is considering transferring, keeping or closing production at El Palomar (Buenos Aires) and Ferreyra (Córdoba).
- The group has already cut output in Argentina by removing a shift at El Palomar and slowing pickup production in Ferreyra because exports and local demand have fallen.
- Zola said Argentina's production costs — including labor he described as roughly double Brazil's — and a limited local supplier base make locally made cars less competitive versus imports.
- Chinese-brand imports have jumped from under 5% to nearly 20% of Argentina's market this year, a shift that contributed to Peugeot's market share falling from about 9% to roughly 5%.
- Final industrial decisions will hinge on Brazil's market and policy outlook, with Stellantis highlighting Brazil's roughly 65% share of regional volume and warning that political or currency moves could change the calculus.