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New project to generate industrial policies in the automotive sector

Within the framework of a cooperation agreement which the Argentinian car workers’ Union (SMATA) closed with the IAE Consensus Center and in which ADEFA, together with the Association of Car Part Factories (AFAC) and of Car Dealers (ACARA) participate,  progress was made on the development of a Proposal for the transformation and sustainability of the Automotive Sector. A study which set out its first arguments at the annual meeting which organized the high studies house.

Under the slogan "The consensus as a key factor in creating value", the importance of promoting dialogue in various areas, including the automotive sector, was addressed. Building agreements, why? What for? How? On this they reflected in Consensus 2019 on the value chain side of the automotive sector, the Executive Director of ADEFA, Fernando Rodríguez Canedo; the General Manager of AFAC, Juan Cantarella; the president of ACARA, Ricardo Salomé; and Julian Domínguez and Javier Ditto, on the side of SMATA.

Aware of the crisis affecting the industry and the need to work together to face global and local challenges, work began on a sustainable plan for the next few years in conjunction with all the links of the chain, gathered initially by the guild.

In this working framework and under the umbrella of the meeting at the IAE, the Executive Director of ADEFA, highlighted the need to "set aside individual interests and try to face dialogue processes", and this joint work towards consensus is the best tool so that we all have the same North: a strong and competitive industry in the long term.

For his part, Cantarella of AFAC added that "competitiveness rules, beyond the crisis.  Agreements with the European Union or Brazil can be an opportunity or a threat, depending on what we do internally as a country and as a sector". "Either we all arrive, or nobody arrives", he emphasized.

Within the framework of the "Plan 2030" that has been worked upon since the beginning of 2019 together with the entire value chain, Dominguez defined it as a way of "embracing the future": "The automotive industry is fascinating but it is a spreader of new technologies and one of the challenges is to prepare so that the 21st century improvements do not become an expulsion of labor".

The current disruptive scenario facing the sector requires joint work. Ditto, SMATA's assistant secretary of conventions and labor laws, said: "We are convinced that it is with everyone, it is not political slogan. We believe so. We used to do individual jobs, but we convinced ourselves that we had to do something together, that it had the weight of the whole chain."

He admitted that sometimes it's hard to agree and find the balance of interests, but they're sure it's the best path to take.

This work that seeks to articulate interests and institutionalize an agreement will shortly be presented to all presidential candidates: "With whoever comes we want the industry to develop, to expand, and to continue providing quality jobs and training skilled workers", Ditto said.

Overall, the aspects which are being worked on refer to tax matters, establishment of investments, competitive improvements, education and training of human resources and other issues related to the rejuvenation of the vehicle fleet.

The following figures allow to measure the importance of the automotive sector as one of the most important and dynamic of the Argentine economy positively impacting on socio-economic terms and stimulating efforts linked to innovation activities and technological development.

  • 12 automotive terminals based in Argentina
  • 500 car part companies
  • +1,000 automotive dealers
  • + 25 thousand mechanical workshops
  • It generates 650 thousand jobs.
  • Production capacity: 1.2 million vehicles/year
  • 6,6% industrial GDP
  • It Concentrates 35% of the industrial export
  • 14 million units --> National Vehicle Fleet

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