Brazil: Mercedes-Benz to send 5,600 workers on vacation due to chip shortage

RIO DE JANEIRO, BRAZIL – Mercedes-Benz Group announced on April 4 that it would send more than 5,000 workers on collective vacation at two plants in Brazil due to a shortage of semiconductors.

The production stoppage will run from April 18 to May 3 and includes 5,000 employees at the São Bernardo do Campo plant and 600 at the Juiz de Fora factory, located in the Brazilian states of São Paulo and Minas Gerais, respectively.

Mercedes said it is adjusting its production of trucks, truck cabs, bus chassis, and other auto parts due to the global semiconductor supply crisis.

The company had already put some 1,200 workers on collective vacation with pay in March due to supply chain shortages, according to the metalworkers union in the São Bernardo do Campo region.

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