Fiat’s Argentine unit sees output tripling in two years if demand for new vehicles from Brazil continues to rise, a spokesman said.
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The automaker’s factory in the central province of Cordoba currently produces 420 vehicles a day, but daily output could rise to 1,200 just by increasing the labour force, spokesman Leonardo Destefano told Reuters.
“In two years we should be using all of our installed production capacity, considering the outlook for the Brazilian market and the Argentine,” Destefano said.
“To the extent that the regional market continues growing, we should be able to increase (production) without making investments, which we did a few years back. Everything depends on the market,” Destefano said.
The Argentine unit exports about 85% of its output with most going to Brazil and some to Chile, Uruguay and Venezuela.
Brisk economic recovery in regional powerhouse Brazil is stoking demand for vehicles made in Argentina, where carmakers forecast record output this year.
Renault’s local unit said this week it was on track for record car production this month due largely to strong orders from Brazil.
Output at its plant in Cordoba will exceed 12,000 vehicles, the company said in a statement.
