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Fiat Argentina CEO calls for one digit inflation to help stabilize production

Wednesday, April 16th 2014 - 04:15 UTC
Full article 12 comments

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

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  • Bubba

    This 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 0
  • Papamoa

    Too 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 0
  • yankeeboy

    I've said for a long time, I think this is the end of days for the car mfgs in Argentina.
    There'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.

    Apr 16th, 2014 - 10:44 am - Link - Report abuse 0
  • ChrisR

    FIAT’s problem is not Argentina. They are history and going backwards to their future and Peronism forever.

    FIAT’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.

    Apr 16th, 2014 - 11:10 am - Link - Report abuse 0
  • yankeeboy

    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.

    Sometime later this year the agreement not to repatriate funds runs out. BCRA has even less U$ than they did last year. So what now?

    Apr 16th, 2014 - 11:23 am - Link - Report abuse 0
  • Anglotino

    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
  • Welsh Wizard

    @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 0
  • yankeeboy

    They're going to have to do it sometime before they all just close up shop.

    Apr 16th, 2014 - 03:10 pm - Link - Report abuse 0
  • ChrisR

    Turin 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.

    And then they close it.

    Apr 16th, 2014 - 03:51 pm - Link - Report abuse 0
  • Klingon

    I would guess sales are down 80% in Argentina. The government shot themselves in the foot with that one.
    Look for empty factories soon

    Apr 16th, 2014 - 10:07 pm - Link - Report abuse 0
  • RICO

    Argentina has single digit inflation - 3% per month.

    Apr 17th, 2014 - 07:13 pm - Link - Report abuse 0
  • yankeeboy

    Looks like the layoffs I've been predicting are starting.

    Apr 19th, 2014 - 12:06 pm - Link - Report abuse 0

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