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Grupo Corven to Expand Foton Manufacturing in Argentina, Exploring Chery Production

Corven says the plan proceeds only if sales scale improves alongside financing conditions.

Overview

  • Grupo Corven, which detailed the plan Tuesday in local outlets, set a roughly US$50 million program to grow Foton assembly and begin building pickups in Argentina.
  • About 80% of the new Campana production line is complete, with an opening targeted in six to eight months to make six or seven models and shift output from the current Caseros site.
  • Talks with Chery continue on possible local production of SUVs and a mid-size pickup, with the Himla name filed at Argentina’s patent office, though no launch timing is set.
  • The company says any Chery move and the deeper Foton build-out depend on reaching enough sales to support local lines and on developing a domestic supplier base.
  • Management flags tighter financing as a risk, citing higher dollar costs from the exchange rate and a rise in customer loan delinquencies to 20% from 10%, even as interest rates start to ease.