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Production Resumes at VW Plant in Argentina
German automaker Volkswagen will restart production at its plant in the central Argentine province of Cordoba after reaching an agreement to produce 90,000 gearboxes for the Chinese market, a union official said Wednesday.
The secretary-general of the Cordoba branch of Argentina’s Union of Automotive Transport Mechanics and Allied Workers, Omar Dragun, said VW, which had suspended staff at the Cordoba factory, has decided to lift the measure until year’s end because of the order from China.
“We’ve been notified by the parent company that the shipment of the first 90,000 MQ200 gearboxes has been approved,” Dragun told Cadena 3 radio, adding that output at the plant will resume immediately and calling it an “extremely important” development in Argentina’s auto sector.
“We think there will be other shipments,” he said, hailing the Chinese market as “vast.” Chinese auto production exceeded 17 million vehicles in 2012, the highest in the world, according to the Paris-based OICA automobile manufacturers’ federation.
Provincial and national authorities had not yet been notified of the production restart, Dragun said in the radio interview.
Volkswagen said last month it was suspending 800 staff at one of its Argentine factories, joining other automakers that have cut back on production in recent months due to a sharp drop in domestic sales and in exports to Brazil, which fell into a technical recession in the second quarter.
The Argentine government has been holding meetings in recent days with automakers to examine measures and strategies for jumpstarting the sector.
Published in Latino Daily News
Source: http://www.hispanicallyspeakingnews.com/latino-daily-news/details/production-resumes-at-vw-plant-in-argentina/31113#When:16:04:46Z
