Mercedes Benz joins the wave of investment in the automotive sector in Argentina

The German automaker Mercedes Benz announced this week a US$20 million investment in Argentina to acquire a 20-hectare property in Zárate, Buenos Aires province, where it will build a logistics center for auto parts and spare parts.

It adds to the investments announced in recent days by Toyota (US$60 million) and Volkswagen (US$50 million), thus ratifying a year of full recovery for the sector after the 2018 currency crisis and the hit of the pandemic in 2020.

The center will house the company’s local suppliers, with the aim of consolidating the participation of national components in the production of Mercedes, according to the national government.

Raúl Barcesat, CEO of Mercedes Benz Trucks and Buses of Argentina, said that the announcement is the “first step in a new stage for Mercedes Benz Trucks and Buses of Argentina, which confirms our long-term commitment to the country.”

Mercedes Benz Camiones y Buses de Argentina (Daimler Truck AG) employs more than 450 people in the country, and indirectly another 2000 individuals distributed in its 24 official dealers and more than 45 points of sale and after-sales.

Mercedes-Benz Argentina manufactures, exports, and markets “premium utility vehicles” such as the Sprinter, while it also sells and offers aftermarket luxury cars and SUVs. At the Juan Manuel Fangio Industrial Center, located in Virrey del Pino, it produces the third generation of the Sprinter, a utility model with more than 26 years of national production.

“This announcement shows the impact of the Law for the Promotion of the Automotive and Auto Parts Industry, which took a lot of work, which took place in the context of much debate and which is beginning to show results. In the last 15 days, four companies announced the production of trucks and buses in the country with different technologies, in competition. This shows the capacity in terms of human capital, in terms of the talent of our people, to transform Argentina into the regional production hub, not only for trucks and buses but also for vehicles,” said the Minister of Economy, Sergio Massa, during the announcement.

THE RECOVERY OF AUTOMOTIVE COMPANIES IN ARGENTINA

Both production and exports of the Argentine automotive sector reached their highest level in at least six years in 2022, according to the Association of Automotive Manufacturers (ADEFA), which only disseminates statistics related to automobiles and light commercial vehicles.

Without taking into account the month of December, some 499,774 units were produced in 2022, while 299,681 vehicles were shipped abroad.

With a total of US$3.702 billion exported in the first half of 2022, mainly to Brazil, vehicles make up the fourth export complex in Argentina this year.

With information from Bloomberg

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