Stellantis targets exports with new investment in Argentina

Stellantis announced last Thursday (Sept. 5) a $385 million investment in its Córdoba plant in Argentina. The funds are part of a regional investment cycle the company announced in March, which also included a R$30 billion investment in Brazil. Both programs will be implemented in the region between 2025 and 2028.

The investment will be used to develop a new family of vehicles, components, and an engine. Currently, the Córdoba plant produces the Cronos car model.

According to Stellantis, the new vehicles are designed to be “exported in large volumes to South American markets.”

Additionally, Sudamericana, an Argentine auto parts manufacturer recently acquired by Stellantis, will be integrated into the group to supply parts regionally.

Emanuele Cappellano, President of Stellantis in the region, stated that Argentina’s economic situation did not affect the investment decision, which is focused on the medium and long term.

The executive also noted that another Argentine factory in Palomar, which produces Peugeot and Citroën vehicles, received $270 million in the previous investment cycle. Much of that funding went towards developing the new Peugeot 208.

Cappellano confirmed that Stellantis has already begun pre-production of hybrid ethanol-powered cars in Brazil. He stated that two models with these features will be introduced to the market by the end of the year.

In March, Stellantis’ global CEO, Carlos Tavares, announced to the Brazilian government the company’s R$30 billion investment in the country between 2025 and 2030, alongside an investment of roughly R$2 billion in Argentina. This marks the largest of the sector’s new investment cycles.

The automotive industry’s new investments total R$126.1 billion over the decade. This figure includes R$115.5 billion from automakers’ plans and R$8.6 billion from truck and bus sector programs, some of which have already been exhausted or are nearing completion.

Source: Valor Econômico

Click here to access the original news report: https://valor.globo.com/empresas/noticia/2024/09/06/stellantis-investe-na-argentina-de-olho-na-exportacao.ghtml

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