Stellantis pauses production in Argentina due to market challenges

Stellantis has once again halted production at its El Palomar plant in Argentina. The facility, which produces the Peugeot 208, 2008, Partner, and Citroen Berlingo, was idle from February 18-20 and February 23-27. Assembly is scheduled to resume on March 2.

The company described the pause as a seasonal adjustment to production rhythms and an opportunity for maintenance. However, this decision coincides with a worsening market situation.

In 2025, Argentina's automotive sector fell short of the projected 650,000 vehicles sold, ending the year at 612,000 units including commercial vehicles. January saw 65,080 registrations instead of the expected 70,000. In February, industry estimates suggest sales dropped 20-25% year-over-year—approximately 35,000 transactions compared to 44,000 a year earlier.

An additional factor has been declining exports to Brazil. In 2025, shipments of the Peugeot 208 fell by 38%, while the 2008 dropped by 44%. The production cut aims to prevent inventory buildup.

Stellantis emphasized that these changes do not affect long-term plans or the company's structure. Nevertheless, against the backdrop of slowing demand and exports, the country's auto industry is forced to revise its annual forecasts, including prospects for new 2026 models in the local market.