General Motors has temporarily stopped vehicle production at the GM Alvear plant in Argentina, a country that is going through a severe economic crisis that is affecting GM’s local business.
The automaker halted vehicle production earlier this week at the GM Alvear plant due to a lack of imported parts, as confirmed by the company’s own Argentine subsidiary on October 10th to local media. This logistical problem at the Alvear complex is due to the acute shortage of foreign currency for the import of parts in the automotive industry and represents a new difficulty for GM Argentina’s operations.
“The GM Alvear plant in Rosario temporarily interrupted its production this week due to a problem in the supply chain of several suppliers,” said GM Argentina in a statement to local media. “Production will be resumed as soon as parts are received from affected suppliers,” added the company.
In particular, the company did not reveal any details about the missing parts that caused the production halt at the Alvear plant or how long it will take to resume activities at the factory. However, it was made clear that the shortage comes from several local auto parts suppliers who have been suffering the ravages of the country’s turbulent economy and the constant bureaucratic delays, both in accessing foreign currency and making payments.
While it’s unclear whether the issue also affects production at the GM Alvear plant’s powertrain line – which produces the turbocharged 1.4L I4 LE2 engine and other drivetrain components – some sources suggest the shutdown is partial and specifically halted vehicle assembly. Currently, the Argentine plant produces the second-generation Chevy Cruze in both body styles and the Chevy Tracker subcompact crossover.
It is estimated that the production stoppage at the Alvear plant will last for at least a week and will end as soon as the suppliers manage to supply parts to the manufacturer. With the most recent $300 million USD investment completed in 2022, the production capacity of the GM Argentina plant increased from 80,000 to 110,000 units annually and the majority of the units manufactured are of the Chevy Tracker – which is exported to Brazil and Colombia.