Carlos Tavares, Global CEO of Stellantis: “Our strategy is to increase production in Argentina”

Carlos Tavares, global CEO of Stellantis (a company that brings together Fiat, Peugeot, Citroën and Jeep, among other brands) and Antonio Filosa, president of Stellantis South America, talked about the group's projects, the current situation in the country and how its objectives for Argentina are “to increase production”.

In the framework of a press conference attended by Infobae, executives highlighted the company's achievements in Argentina in 2021, although they also shared their concerns about local economic variables and “the new challenges” that the agreement with the International Monetary Fund (IMF) could bring.

According to them, there are more opportunities in Argentina and they are currently studying them. “We know that there is a reality, we have Argentine friends... We need to be more competitive to help that exports are not motivated by trade, but also by profitability,” said the Portuguese executive who was number 1 of Groupe PSA and who after the merger with FCA commands the new Stellantis.

Asked by the media about the problems of importing into the country, Tavares pointed out that “everything is based on the availability of foreign currencies in the Argentine banking system. Obviously, what we are all trying to do is increase or at least find a balance between the exchanges between Argentina and Brazil so that the development of the industry in Argentina can continue, based on the existence of foreign resources and currencies that allow the import of whatever needs to be imported.”

In that sense, he clarified that this is an aspect that is not limited only to the automotive industry, but to the competitiveness of everything that adds value added to Argentina. “Our policy has that foreseen, within our strategy is to increase production in Argentina. By the way, the decision to manufacture the Peugeot 208 in Argentina was rooted in this understanding of the balance between exchanges,” he stressed.

He said: “The Peugeot 208 is working very well, with great success and a good reception from the market. Antonio (Filosa) made the decision to put two teams to work in the Argentine factory, so that commercial success could also be supported by production and that was the case. We could have done more if we had more semiconductors, but we had that difficulty. We are very close to creating a competition for our competitor that is at high levels. And we're going to end 2022 very close to that number one position.”

Regarding the agreement of the national government with the International Monetary Fund (IMF), Filosa said: “I think it is an agreement with hard objectives.” He continued: “It seems to me that the Argentine Government entered into a successful negotiation. As a company, we are ready and ready for the new challenges that such an agreement could bring: for example some restriction on international trade.”

“The only concern is in relation to Argentine suppliers,” he confessed. And then he said: “We have the most locally integrated car in Argentina, which is the Fiat Cronos, with more than 50% of components leaving Argentine suppliers' plants. We are growing in local integration with the Peugeot 208, a fantastic car that will grow as a local integration with Argentine suppliers. The only thing we need to keep in mind is that suppliers must be helped in this transition from the agreement with the IMF that has just been sanctioned.”

Plans in Argentina

When asked about the company's plans in the country, Tavares remarked: “We are the leaders of the Argentine and Brazilian markets.” He argued that they understand “perfectly” the functioning of Mercosur and, in that regard, noted that they seek “a balance of exchanges between Brazil and Argentina”. “Maybe we are or are at level two of the assemblers in Mercosur, in relation to the exchange between the two countries. That is why we are contributing sincerely so that these exchanges can become a reality.”

“Obviously, it is also clear that there are more opportunities in both Argentina and Brazil. And I can say that our strategic plan for the product is extremely rich, extremely powerful. And we will continue to fully utilize the potential of the Mercosur market. As I said, we are leaders and we want to increase our leadership,” confirmed the Global CEO of Stellantis.

“We can do much more. It seems to me that there is more room for progress,” he emphasized. He noted: “There is much to do in the Argentine industrial world to make Argentina's exports even more profitable, seeking those balances of trade between the two countries.” The company, they indicated, are attentive and will help the two countries in this exchange “because it is an ethical, formal contribution of our company to the economic health of both countries”.

In this regard, Filosa emphasized that Argentina has already established new rules of trade with Brazil in regulated Mercosur. He said: “We, as a company, have the goal of growth in the country where we are already leaders, where we already have the best-selling car, which is the Fiat Cronos, followed by the Peugeot 208. We will surely continue to grow.”

Regarding its prospects for 2022, the president of Stellantis America stated: “We are the company that grew the most in exports in 2021 - compared to 2020 - and that will grow the most in 2022, perhaps competing with the number 1 export company that is Toyota.”

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