BUENOS AIRES, Aug 31 (Reuters) - U.S. carmaker General Motors Co will halt its production line in Argentina for four days during September due to weak demand from Brazil, the main buyer of Argentine-made vehicles, a company spokesman said on Monday.
The reduced output spells more trouble for Argentina’s auto industry, which is battling a slump in orders from recession-hit Brazil and struggles to import parts because of a squeeze on dollars in Latin America’s No. 3 economy.
“GM has decided to suspend production for four days during the month of September,” GM said in a statement. “The objective is to adjust to Brazil’s current demand.”
GM is not the first carmaker operating in Argentina to reduce production runs or scaleback workers’ shifts. Other manufacturers, including factories assembling electronic goods, have been hurt by the dollar shortage.
Car production in Argentina fell 8.3 percent in July compared with the same month a year earlier, and 16.4 percent against June, the ADEFA association of vehicle makers said. July vehicle exports fell 9.4 percent on the previous year.
Car makers operating in Argentina include Ford Motor Co , Honda Motor Co Ltd, Toyota Motor Corp, Volkswagen AG, Peugeot SA and Fiat Chrysler Automobiles. (Reporting by Richard Lough; Editing by Lisa Shumaker)