The birth of Stellantis at a global level will have an impact at a local level, the union of FCA and PSA Group will create the automobile with the largest production capacity in Argentina. The Fiat plant in Cordoba is capable of producing some 100,000 vehicles a year. The Peugeot-Citroën factory in Buenos Aires can assemble up to 160,000 cars in two shifts. Between the two factories, they would be able to produce about 260,000 units per year.
The industrial activity showed a significant recovery during June and the first days of July: it went from falling 40% year-on-year between the end of March and the beginning of April to only 12% in the last 30 days, according to the index prepared by the Centre for Production Studies (CEP).
ECLAC presented its latest report indicating that Argentina will have a 10.5% fall in GDP, five points more than it had predicted in its April report. The evolution of soybean and oil prices will impact activity. The average contraction in the region expects to be 9.1% in 2020, a drop 70% higher than that estimated three months ago.
In June, capital market financing for SMEs was the most dynamic segment and the only one that grew in real terms. The negotiation of deferred payment documents grew 115% compared to the same month last year, reaching 18.6 billion pesos ($261.18 mn) which represented 34% of the total market. Small companies paid rates of 26% against 34% faced by the big ones.
More than 9,000 workers in the industry lost their jobs during April, compared to the previous month, as a result of the COVID 19 crisis, which directly impacted the productive framework and the Argentine labour market. In the year-on-year comparison with April 2019, this sector loses 46,000 jobs. In general terms, registered private wage employment, which was already in decline before the pandemic, accelerated its fall in April with a monthly loss of 128,000 jobs (2.2% per month) and an annual loss of 322,000 (5.3% year-on-year).