Mercedes-Benz and Volkswagen have announced temporary suspensions of certain operations in their São Paulo-based facilities due to fluctuations in market demand.
Mercedes-Benz’s São Bernardo do Campo plant, primarily focused on truck and aggregate production, will see an extended suspension of worker contracts until August 31.
While full production is not halted, the automaker has confirmed it is adjusting production volumes in response to market conditions.
Similarly, Volkswagen’s Taubaté facility is set to suspend contracts of 800 employees for two months starting from August 1.
This decision, sanctioned by a collective agreement between the Union and Volkswagen, comes amidst market performance of the Polo model, which has recorded sales of 37.7 thousand units in the first half of the year.
On June 27, Volkswagen also paused production at its São José dos Pinhais, Paraná, São Bernardo do Campo and Taubaté plants due to market conditions.
These decisions underscore the automakers’ strategies to navigate current industry challenges.