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Due to the crisis and the change in the rules of the game, at least ten large companies left or reduced their presence in the country

2020-09-14T20:10:49.665Z


Falabella's decision joins that of Latam, as well as other airlines, auto parts companies and multinational apparel companies. Walmart is also looking for a strategic partner.


09/14/2020 - 16:40

  • Clarín.com

  • Economy

The quarantine aggravated a trend that had already come before:

there is a continuous departure of companies from the country

.

From aviation to auto parts, local subsidiaries of foreign companies give up on the Argentine market.

In the same situation as

Falabella,

which has already announced the search for a partner to lower its exposure in Argentina, is

Walmart.

The difference is that the hyper has not closed establishments.

In total and so far this year there are at least ten cases.

One of the first to announce that it will leave the country was

Latam, the Chilean airline that is closing the local operation.

It meant the start of the departure of several airlines, such as

Emirates and Air New Zealand.

In the cabotage market, the Norwegian

Norwegian

had already ceded its positions to Jetsmart.

And there are doubts about the continuity of Flybondi due to the problems at the El Palomar Airport.

Telefónica de España

announced that it will divest of some business units in Latin America, including

those it has in Argentina

.

The American

Nike

will also hand over to local firms the development of the brand in the country.

Within the fashion labels

, Wrangler and Lee

are others who announced their retirement.

The German

car

paint

manufacturer

Basf is

not escaping the situation.

It moves its local production to Brazil, where it finds a larger and more established market.

Axalta, from the United States,

dedicated to the same area of ​​the automotive market, began the exit process.

Walmart is looking for a strategic partner.

The French

Saint-Gobain, an auto parts company,

is another in the same process: it closed its Campana plant, with more than 150 workers who were laid off.

Brazilian firms were evaluating following a similar path, but the Government of his country asked him to

reconsider

, after some management of the Argentine Foreign Ministry.

The reasons for the departures are dissimilar.

Some say

their local business was down,

they were losing money, or they don't have attractive margins to continue.

In the commercial aviation market, all airlines are hit hard, but the official decision seems to be aimed at

favoring Aerolineas, to the detriment of the other firms

that operate cabotage.

The records of passengers transported by plane in recent years seem unrepeatable, even when the pandemic passes.

In private, they often express other complaints.

The problems to access the exchange market is one of the most mentioned.

The exchange restriction complicates firms that depend on imports to carry out their production processes.

BASF plant in Tortuguitas, where the production of paints and repainting for cars, the distribution center and the color laboratories operate.

There are also the

constant changes of local rules of the game.

From the exchange rate to the tax - new increases in the income tax paid by the companies are being analyzed - through the political framework.

The announced expropriation of Vicentin

-which did not materialize- got scared in international markets.

The telecommunications sector, which is usually one of the most dynamic and requires permanent investment to avoid becoming outdated, is regulated by a decree that threatens to turn it into a public service.

"In most markets, governments are seeing

how they help companies to sustain employment and not to fall,

" details the executive of a multinational that is on the way out.

And he compares: "In Argentina, there was assistance in the payment of salaries, but the general rules of the game

are very changeable, unstable

. From the exchange rate to regulations and taxes. You have to be an investor who looks at the very long term. ".

Source: clarin

All business articles on 2020-09-14

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