the effects of its closure on the automotive industry crisis

On Friday Colmotors He said goodbye to the vehicle assembly in Colombia, after 68 years. General Motors sticks with its brand Chevrolet, but industrial production was not profitable for a long time and with the drop in sales, the situation became unsustainable. Employees were liquidated and people with 20, 30 and even 40 years of seniority left “your company”.

That episode occurred just two years after investing US$50 million to produce a new model in Colombia.

(More: The end of an era: the keys to understanding the closure of the Colmotores plant).

Given this, the Andi president, Bruce Mac Masteremphasized that “This is undoubtedly very bad news for the country. It imposes the need to identify and correct the causes that generated it, and take seriously the conversation of understanding what Colombia must do to offer conditions for national and international investment.”.

And the figures that show this reality are stubborn: The manufacture of motor vehicles and their engines fell in the last year, from March 2023, until last February, by 46.4% in real terms and sales by 39% in real terms.according to Dane figures.

Oliverio García, president of Andemos, mobility unionwas forceful: “We want world-class industry, but we declare war on cars. We want an energy transition but they are waging war on hybrids. So nothing will ever prosper”.

(More: The other Latin country from which General Motors is also leaving, leaving thousands of unemployed).

And he added that Colombia, due to its population, should be on average selling 500,000 units per yearBut this year “If we do well we would reach 160,000 and we are the fourth largest economy, meaning we should be selling 700,000 vehicles per year on average, but not even close.”.

The reality of the sector is complex and the last 19 months have been one of free fall and, even, the experts do not dare to say that the bottom has already been reached, but rather the most they dare to say, is that if we do well, sales would be similar to those of the previous year.

And in the middle of that panorama, The industry suffered a strong setback in 2020, when in the midst of the pandemic it placed 188,391 unitsthe worst year of the last decade up to that point.

In it 2021, between international logistics difficulties and lack of products, reached 250,272 units. There was a market eager for product, which led to 268,338 cars placed in the local market in 2022, and it was optimistically thought that in 2023 the country would return to the levels of 300,000 units, last achieved in 2014. .

(More: The cars that the Colmotores plant assembled throughout its history).

But the blow was hard and at the end of last year there were 186,338 units. Furthermore, this year it did not take off well either, since in the first quarter only 40,525 units were placed, a figure that marks a drop of 13.5%, and now sales forecasts are between 165,000 and 185,000 units.

Aconauto, the union of automobile dealerscalled on the Government to once and for all define a policy of economic reactivation and promotion of industry and investment, which puts the country on the path of growth, employment and well-being.

According to Pedro Nel Quijano, president of Aconautothis fact goes beyond the loss of 850 jobs and the withdrawal of an industrial facility, but rather the dismantling of a value chain that began to be built in 1957 and that produced 35% of the parts that make up an automobile. .

(Keep reading: The story of Colmotores: his birth, the crises he experienced and his contribution to the country).

“Tires, batteries, upholstery, glass, wheels, electrical components, plastics, spark plugs, springs, shock absorbers and many more auto parts were made by independent businessmen, who bet on the development of the country, but who due to a series of unfortunate policies are also forced to close their businesses and lay off workers” says the guild.

And he adds that the current state of things cannot continue in rhetorical discussions and without budget execution in the Government’s own programs, which set the country adrift, scare away investors and erode employment.

“We call on the National Government to once and for all define a policy of economic reactivation and promotion of industry and investment that puts the country back on track on the path of growth, employment and well-being for thousands of families.”.

The Colombian automotive sector is paid for the work of assemblers, auto parts manufacturers, importers of vehicles and spare partsas well as the commercial channels of each of the 54 brands that compete in the country.

(You can read: This is how they notified Colmotores employees of the plant’s closure).

According to a recent study by Fedesarrollothe added value of this industrial and commercial chain means 7% of the national industrial Gross Domestic Product, which is synonymous with well-being for thousands of families in the country.

Regarding the commercial arm of the vehicle brands, there are 433 dealerships, owned by 152 business groupsconglomerates that have between 1 and 10 multi-brand operations.

Between sales, after-sales and administrative personnel, The concessionaires employ a total of approximately 190,000 people directly and, indirectly, about 60,000..

There is a small segment of luxury vehicles and the vast majority of sales are concentrated in the middle strata in the case of individuals or work vehicles. “The car is not a luxury, nor does having it imply wealth.“said Aconauto, who also put himself at the service of the authorities in the sector to form a working group that defines objectives and concrete actions that contribute to the economic reactivation of the country and the sector.

“What we businesspeople want is for the business fabric to be encouraged and protected, and for private initiative to be encouraged.“, indicated the vice president of Fedetranscarga, Arnulfo Cuervoin a video on his X account. And he added that the only way to generate employment and grow is to count on companies.

The union leader said that they, as transporters, are seeing how every day they face more problems on the country’s roads and how the volume of cargo moving through Colombia is decreasing every day.

CESAR GIRALDO
Portfolio Deputy Editor
​[email protected]