The automotive sector presented a social and productive Plan 2030

Historical: the automotive sector developed a long-term plan to take care of employment and to define the industry as "strategic" of domestic production. The project was presented this morning at a seminar at the headquarters of the Automotive Transport Mechanics and Allied Workers’ Union (SMATA).

In an unprecedented event in Argentine history, the entire value chain of the automotive sector worked together for 11 months and developed the Strategic Plan of the Automotive Industry 2030, which this morning was presented at a seminar held at SMATA, the guild that promoted the initiative.

With the presence of the President of the Nation, Alberto Fernández, the Minister of Productive Development, Matías Kulfas, the Minister of Foreign Affairs Felipe Solá, governors, mayors, legislators, representatives of the automotive terminals, car dealers, car parts manufacturers, the labor movement and guests, they detailed the guidelines and objectives of this historic work that promotes care and creation of more and better skilled employment.

With the methodological coordination of the CONSENSUS center of the IAE Business School of Austral University, the "Social and Productive Agreement for the Argentine Automotive Sector" elaborated by the all the actors of the chain provides, through a draft Framework Law which will soon enter the Congress, that the automotive industry shall be defined as "strategic" for domestic production, the creation of the Mobility Institute, the enhancement of the sector as an export model and attracting new investments in the complex international scenario presented to Argentina.

In 2017 – 2020, the sector compromised investments of more than $5 billion, and the Plan's goal is reaching $22 billion by 2030. This expects to quadruple production from 330,000 to 1.8 million units, to employ 1.3 million Argentines and to achieve a 14% share in the Industrial GDP (currently 6.6%), as well as to generate exports of $46 billion.

Before an auditorium of almost a thousand people, SMATA's secretary general, Ricardo Pignanelli, stressed that "a law for the automotive industry will be the instrument for this fundamental player for the economic and social development of the country to reach its full potential. We were always available for the balanced dialogue because that is our essence. In the differences we are going to have discussions, but from the discussions the consensus always came out".

In that sense, President Fernández thanked the sector for being responsible for kicking off a new social contract. "This meeting sums up what we are proposing to the Argentinians. May those who produce and work reconcile interests to make Argentina grow. I'm just asking for a seat at that table for the State to be present and concretize faster", Fernandez said.

Currently the sector is composed of 12 terminals, 1,300 car part manufacturers, more than 1000 car dealers and 25,000 workshops. And it employs 650,000 people directly and indirectly. In the face of the current crisis, Pignanelli decided to call the industry value chain and launch an unprecedented initiative in the country: the development of the 2030 Automotive Strategic Plan with the firm objective of defending employment positions and balancing interests of the entire value chain in order for the industry to be defined as "strategic" for the domestic production model.

"To declare the automotive sector as strategic is to provide a federal framework and commitment to be able to build a sustainable industry for the future", said Gabriel Lopez, president of ADEFA.

In the same vein, Isabel Martínez, head of ADIMRA’s Automotive Commission, added that: "The work of all the members of this agreement will generate the possibility to continue expanding the base of stakeholders and thus finding the right mechanisms to boost the growth of local suppliers".

The details

This Strategic Plan 2030 anticipated having a Framework Law on the Automotive Industry, to fulfill a dual objective: to defend and enhance employment positions for the Argentine skilled workforce and to promote the development of the entire value chain.

At this point, AFAC President Raúl Amil explained that, for a productive strategy with economically sustainable scales, "it is imperative to have a scheme of productive specialization and complementation with Mercosur, the region and the rest of the world. There are no sustainable value chains if any of its links are not, so a systemic approach is required. There are no competitive sectors, there are projects which are competitive"

For his part, Ricardo Salomé, president of ACARA said: "The fact that we are all working together with the generosity that has been taking place is the first step in recovering the internal market, without internal market there is no possible industry. ACARA is firmly committed to contributing in this value chain, in strengthening this union and prioritizing collective objectives. Our sector must be a player in the recovery of the country that has already been launched".

To achieve the objectives of the Plan, industry is defined as:

  • A strategic sector for Argentine production,
  • A generator sector of skilled employment,
  • A specialized export model, with high value-added products,
  • A sector with an intense level of long-term venture capital investment.

"We were called by SMATA to facilitate an agreement process that will help to boost the sustainable development of the automotive sector. We sought to generate an area of debate and reflection, ensuring a wide plurality of opinions and guaranteeing a neutral and academic space to reach consensus", explained Roberto Luchi, director of the Center of Negotiation and Conflict Resolution (CONSENSUS) of IAE Business School of Austral Universidad.

In that search for dialogue and consensus we worked on 7 strategic axes, which will enable to meet the goals set out and to define a working agenda (see attached "Automotive Strategic Plan").

  • Mobility Institute
  • Promotion of new investments
  • Tax competitiveness
  • International insertion
  • Logistics and infrastructure
  • Car parts and inputs
  • Internal Market

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