General Motors will pause its manufacturing line in Argentina for four days in September as a result of weaker-than-expected demand in Brazil.
“GM has decided to suspend production for four days during the month of September,” GM said in a statement. “The objective is to adjust to Brazil’s current demand.”
GM, which markets Chevrolet-branded vehicles throughout Central and South America, isn’t the only automaker to reduce production or scale back workers’ shifts. The reduced output is problematic for the auto industry in Latin America as a whole, which is seeing production drop due to a recession in Brazil. Decreased availability of the U.S. dollar in Brazil further exacerbates the problem, making it more difficult to import parts. The dollar shortage has also had negative effects on industries outside the automotive sector, including factories that assemble electronics.
According to the ADEFA association of automakers, car production in Argentina dropped 8.3 percent in July compared to July 2014, but dropped 16.4 percent compared to June 2015. July vehicle exports, meanwhile, fell 9.4 percent versus July 2014.