MercoPress. South Atlantic News Agency
Fiat Argentina CEO calls for one digit inflation to help stabilize production
Fiat Argentina's CEO Cristiano Rattazzi compared inflation in Argentina with that of Venezuela and Sudan and called on the government of President Cristina Fernandez to bring it down to one digit and help stabilize production costs and exports. Read full article
Comments
Disclaimer & comment rulesThis guy should ask the Botox queen to handle inflation in one hand and crap in the other, then look in the mirror and slap himself to see which one give a reality check..
Apr 16th, 2014 - 09:34 am - Link - Report abuse 0Too much reliance on the one market country of Brazil could lead to the collapse of Fiat in argentina, they need to expand there markets now.
Apr 16th, 2014 - 09:52 am - Link - Report abuse 0I've said for a long time, I think this is the end of days for the car mfgs in Argentina.
Apr 16th, 2014 - 10:44 am - Link - Report abuse 0There's no reason for them to be there.
Its unstable, unreliable, small market, high inflation, huge work force burdens. The only thing that has kept them there is history and the plants. They could easily move everything to Mexico or Brazil and not have any of these issues.
FIAT’s problem is not Argentina. They are history and going backwards to their future and Peronism forever.
Apr 16th, 2014 - 11:10 am - Link - Report abuse 0FIAT’s problem is how to pull out of Argentina and move to Brazil without the machinery and other equipment being sequestered by TMBOA, never mind the removal of any operating liquidity there may be in the company accounts.
No doubt Brazil will allow them in even though it would be a body blow to Argentina’s auto industry. As they say “Malvinas is Argentina” and we all know how much that means to Brazil! Ha, ha, ha.
Ford of course has a different problem: where would they go? Probably best just to shut the plant, take the best machinery elsewhere and run with the money.
General Motors have probably the greatest legacy and may stick it out until it’s too late to do anything. Once one major manufacturer moves TMBOA will be in overdrive with her vindictiveness and we all know the old saying about a woman spurned.
Just leave everything and close down. It's probably too expensive to ship and they can always get huge tax credits from where ever they locate.
Apr 16th, 2014 - 11:23 am - Link - Report abuse 0Sometime later this year the agreement not to repatriate funds runs out. BCRA has even less U$ than they did last year. So what now?
It's not worth shipping plant. They will use its loss as a tax write-off somehow.
Apr 16th, 2014 - 11:31 am - Link - Report abuse 0@5 gov will not contemplate allowing companies to re-patriate. The coutry would run out of US$ in days
Apr 16th, 2014 - 12:54 pm - Link - Report abuse 0They're going to have to do it sometime before they all just close up shop.
Apr 16th, 2014 - 03:10 pm - Link - Report abuse 0Turin tend to be “hands off” until either the finances are so bad that it affects the group or the local MD says that it is becoming impossible to make money.
Apr 16th, 2014 - 03:51 pm - Link - Report abuse 0And then they close it.
I would guess sales are down 80% in Argentina. The government shot themselves in the foot with that one.
Apr 16th, 2014 - 10:07 pm - Link - Report abuse 0Look for empty factories soon
Argentina has single digit inflation - 3% per month.
Apr 17th, 2014 - 07:13 pm - Link - Report abuse 0Looks like the layoffs I've been predicting are starting.
Apr 19th, 2014 - 12:06 pm - Link - Report abuse 0Commenting for this story is now closed.
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