Industry Minister Débora Giorgi has questioned the decisions taken by automotive industry leaders, whom she held accountable for recent suspensions and layoffs. The minister stressed that despite the slower economic activity in the industry, “there have been no plant closures.”
The official said that “the auto industry has shot itself in the foot several times,” in an interview with Tiempo Argentino newspaper. “First, when there was a exchange rate adjustment, they increased prices much more than the dollar’s increase,” Giorgi said, “and they cut off financing lines for the domestic market.”
“Then they realized that they were wrong because in march, april, as Pro.Cre.Auto (credit scheme for new cars) was launched they had to lower their price and demand began to reactivate,” the minister added.
She said that the automotive industry leaders “shot themselves again in the foot with their reaction to Pro.Cre.Auto, when they decided to reduce automobiles stock, thinking there were going to be new exchange rate adjustments that would prevent them from replenish stock.”
Giorgi condemned business leaders for taking measures that in are harmful in the end, based on “wrong exchange rate expectations.”