A warning that covers every option
Herlander Zola, Stellantis president for South America, said the company could move production between its two Argentine plants, keep both, close one, or close both, depending on how the market, the rules, and product competitiveness evolve. In remarks to the Brazilian outlet Exame, he described all those outcomes as possible. The group currently runs two industrial complexes in Argentina: Ferreyra, in Córdoba, where it builds the Fiat Cronos and Titano and the RAM Dakota, and El Palomar, in Buenos Aires province, where it produces the Peugeot 208 and 2008.[S1][S2][S3][S4][S5]
The executive tied the difficulties of Argentine industry directly to the cost structure and to trade openness. He argued that the scenario has changed from the period when the market was more protected and local production held a different position against imported vehicles. He also drew a concrete difference with Brazil: he said labor costs in Argentina are double those in Brazil. To that he added another problem in his diagnosis: the size and characteristics of the local supplier network.[S1]
Pressure from Brazil, China, and Peugeot's decline
The pressure does not come only from Brazil. Zola also pointed to the growth of Chinese automakers and the entry of vehicles produced in other countries in the region. He said the Chinese advance happened at great speed and that every brand producing in Argentina suffered in the domestic market. He added that vehicles made in Brazil also began entering with greater competitiveness than those produced locally. In that context, Peugeot's performance in Argentina appears as one of the elements Stellantis is following to define its industrial structure.[S1]
According to Zola, the fall in the brand's share of the Argentine market explains part of the adjustments the company needs to make at its plants. He said Argentina had been the brand's largest market in the region and that this decline alone explains the adjustments needed at the plant from which most of their volume came. For Zola, any industrial decision about Argentina must be analyzed within Stellantis's regional operation. Brazil represents 65% of South America's automotive volume, he explained, so decisions about the Argentine plants also depend on how the Brazilian market evolves.[S1]
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Ferreyra and El Palomar investments at stake
The warning takes on a particular dimension in Córdoba because Stellantis has just completed a transformation of its Ferreyra plant, with an investment announced in September 2024 of US$385 million. The project turned the Córdoba complex into a pickup production center. Production began there of the Fiat Titano and the RAM Dakota, while the company also moved forward with local output of the Multijet 2.2 turbodiesel engine, scheduled to start in January 2027. The program also contemplated the creation of 1,800 jobs and an export-oriented strategy. Stellantis's stated goal was to send about 70% of the pickups produced in Córdoba to foreign markets, mainly Brazil.[S1]
That process had reinforced Ferreyra's role within the group's regional strategy. Now, Zola's remarks reintroduce a degree of uncertainty about the continuity of the two Argentine plants. The company has also made significant investments in El Palomar. In 2024 it allocated US$270 million to add production of the Peugeot 2008, on top of another US$320 million invested earlier to modernize the facilities and produce the 208 on the CMP platform. Since September 2025, the Buenos Aires plant has also been producing mild-hybrid versions of the Peugeot 208 and 2008 exclusively for export to Brazil.[S1]
A decision that goes beyond Argentina
Zola said that no industrial decision about Argentina can be taken in isolation from Stellantis's regional operation. He noted that Brazil accounts for 65% of South America's automotive volume, so choices about the Argentine plants also hinge on the Brazilian market. He added that without predictability about what will happen in Brazil, it is difficult to make any industrial decision in South America with confidence. The remarks come ahead of Brazil's presidential runoff on October 25, in which Luiz Inácio Lula da Silva and Flávio Bolsonaro will compete. The electoral context forms part of the regional scenario in which Stellantis must make its next decisions, although the report notes that the sector holds differing interpretations of how much that situation may influence the executive's warnings.[S1]
At the same time, versions persist in Argentina about possible changes in the distribution of Stellantis production. One of them points to a possible move of Peugeot production to Ferreyra, although that movement does not appear confirmed in Zola's statements.[S1]
