The recent closure of the FATE tire factory in San Fernando, which has operated for 80 years, has led to the dismissal of 920 workers, highlighting the serious economic issues facing Argentina. The factory's closure is attributed to a decline in the internal market and the influx of cheaper Chinese tires, which accounted for 85% of the market and caused a 70% reduction in production. This situation reflects broader economic struggles as companies struggle to compete with low-priced imports amidst high local production costs.

In the past week, TN Platex, one of Argentina's two largest textile companies, has also faced significant challenges, laying off 900 employees, nearly half of its workforce, and entering pre-bankruptcy proceedings. The company anticipates halving its production levels due to a devastating drop in domestic demand, heavily influenced by the import of finished products. This pattern of layoffs and factory closings signals a troubling trend within the textile industry and raises concerns about the sustainability of local production.

Moreover, Whirlpool, which set up its manufacturing plant in Pilar three years ago with a capacity to produce 300,000 washing machines, has recently decided to close its facility, resulting in the dismissal of 220 employees, as it pivots to importing products from Brazil. Such closures underscore the mounting pressures on local manufacturers from foreign competition exacerbated by unfavorable exchange rate policies. The economic landscape in Argentina is increasingly precarious, emphasizing the urgent need for corrective measures to stabilize the situation before further irreversible damage occurs.