Stellantis weighs options for its two Argentine plants

Stellantis has not ruled out closing one or both of its manufacturing plants in Argentina, according to statements made on Tuesday, October 6, 2026, by Herlander Zola, president of Stellantis South America. Speaking in São Paulo, the executive conditioned future industrial choices on market conditions, trade rules, and product competitiveness, noting that Brazil represents 65% of the regional volume.

The regional management highlighted significant cost differences between neighboring markets. Zola stated that labor costs in Argentina are twice as high as in Brazil, compounded by a smaller local supplier base and the pressure of trade opening. Peugeot's market share in Argentina declined from nearly 9% in 2025 to around 5% this year, impacted by the arrival of Chinese brands and competitive Brazilian imports.

In response, Stellantis has adjusted operations at its El Palomar facility, which builds the Peugeot 208 and 2008. Martín Zuppi, president of Stellantis Argentina, confirmed that the plant eliminated one work shift and adjusted line speeds, but emphasized that production is scheduled through 2026 and 2027. Currently, between 35% and 40% of El Palomar's output is exported, largely tied to Brazilian demand.

Alongside El Palomar, Stellantis operates an assembly plant in Ferreyra, Córdoba, where it is preparing to start production of a new engine toward the end of the year. The group employs more than 5,000 workers across Argentina.