Milei government crisis makes multinational transfer production to Brazil

In a statement, Whirlpool SA, owner of brands such as Brastemp, Consul and KitchenAid, announced this week that it will transfer production from the Pilar factory, in Argentina, to Brazil, more specifically to the city of Rio Claro, in the interior of São Paulo, where it already has a manufacturing plant.

The situation reflects the terrible moment that Argentina is going through under the government of Argentine president, Javier Milei. In recent months, not even the created narrative of economic recovery has been sustained. Inflation in March accelerated by 3.4%. In 12 months, it is 32.6%. To make matters worse, economic activity fell 2.1% in the February result in the annual comparison. The situation is also serious in industry, with a drop of 8.7% in February.

This scenario is a reflection of Milei’s choices, which include the deregulation of the economy, the dismantling of the State and dependence and subordination to the United States, among other aspects of his liberal shock.

The poor choices and economic results have led the country’s companies to bankruptcy. Estimates show that 22 thousand companies were closed during the Milei administration (started in December 2023), according to data from the Occupational Risk Superintendency. The number is surprising and surpasses the closures seen during the Covid-19 pandemic, when 19,000 companies were closed in Argentina.

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In this aspect, the departure of multinationals only confirms this chaos. Whirlpool joins other companies that have already left the country or sold operations in the last two years, such as Telefónica, ExxonMobil, Mercedes-Benz, Clorox, P&G, Alsea and HSBC. Burger King/Alsea is looking for buyers to operate the brand, while Carrefour has given up trying to sell its stores, as there were no proposals that met the minimum expected values.

Thus, this calamitous scenario is already directly reflected in the population: unemployment reaches 7.5%, while informality reaches 43%. Furthermore, the Argentine media has reported that many people are turning to the consumption of donkey meat to replace beef, which increased by 63.2% in 12 months in Greater Buenos Aires, according to Indec (National Institute of Statistics and Census).

Exit from Whirlpool

The household appliances company will close the Pilar factory to transfer production of front-loading washing machines to Rio Claro (SP), which will also continue to manufacture top-loading machines.

It was not specified how many jobs will be created in São Paulo. However, the company reported that the São Paulo unit will be the most advanced in Latin America, with cutting-edge artificial intelligence and robotics.

The justification for the change is to improve operational efficiency and optimize resources. The company emphasizes that it remains committed to continuing to supply and serve Argentine customers.

Check out Whirlpool’s statement in full:

São Paulo, April 2026 – Whirlpool SA confirms the transfer of production previously carried out in Pilar, Argentina, to its manufacturing unit in Rio Claro, Brazil. This transition aims to improve operational efficiency and optimize resources, consolidating Whirlpool’s position as an industry leader by integrating manufacturing excellence and consumer-centric innovation to drive sustainable growth.

Commitment to Argentina

This decision does not change the company’s commitment to continue supply and customer service in Argentina. The market will continue to be served by products manufactured in the group’s various global units and distributed by Whirlpool AR.

Rio Claro as a global hub

By unifying the production of top-loading and front-loading washing machines in Rio Claro, Whirlpool is creating a world-class export hub, ready to supply premium laundry products throughout Latin America. Consequently, Rio Claro will officially become the most advanced manufacturing unit in the region, using Artificial Intelligence and robotics to master the highest complexities of laundry production.