MercoPress. South Atlantic News Agency
Fiat confirms trade disputes between Argentina and Brazil
The Italian company plants in both countries set to close for a week Fiat will trim some production in Brazil and Argentina for a week because of a trade spat between the South American neighbours, the Italian car maker said on Friday.
Fiat's plant in Betim, will shut a shift of one production line for a week for maintenance and to balance product mix, Fiat said in a statement.
Fiat's plant in Cordoba, Argentina, will have a technical stop for a week, mainly to balance Brazil's product mix and transit time.
“This has been made necessary primarily as a result of the current state of trade relations between Brazil and Argentina,” said Fiat, which has the biggest share of Brazil's auto market.
The trade friction was triggered by Brazil's decision to delay import licenses for foreign-made autos after Argentina increased the number of goods that required such licenses.
Fiat said it was correcting press reports in Brazil and Europe that said the entire Betim plant was being shut down.
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Read all commentsLooks like Toyota and Fiat are putting a bit of pressure on Governments to get some realism into trade dealings, and to remind the governments that they are not to be thought of as mere pawns in the games of bilaterality.
Jul 10th, 2011 - 08:57 am 0Commenting for this story is now closed.
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