Why this is important to Wisconsin businesses: GM has already announced plans to produce a model there, with a $500 million investment.
In March 2017, Argentine President Mauricio Macri announced his latest plan for the automotive industry: the 1 Million Plan (Plan 1 Millón), whereby Argentina aims to produce 750,000 cars annually by 2019 and one million units annually by 2023. This ambitious project aims to strengthen national auto-parts manufacturing and R&D capacity and invest in new projects to make Argentina more competitive at the international level. The development of new motorization technologies and strategic auto parts will also be promoted.
After a steep 10.2 percent drop in automotive production in 2016, the 1 Million Plan aims to ramp up automotive output to make Argentina a leading global player in the industry. The plan is expected to generate more than 30,000 direct jobs in the industry and encourage foreign investment into Argentina by reducing import duties on auto parts and technologies related to the automotive sector. It was made possible through a deal that the government reached with labor unions for more competitive labor arrangements sector by sector, rather than through wholesale reform like Brazil.
Moreover, it is expected that the automotive industry will receive investments worth up to $5 billion between 2017 and 2019. The 1 Million Plan looks well placed to significantly increase automotive output to make Argentina a leading global player in the industry. GM and its suppliers have already announced an investment of $500 million to produce a new model there.