General Motors Brazil to suspend São Caetano (SP) plant operations for six weeks

RIO DE JANEIRO, BRAZIL –  General Motors in Brazil (GM) notified its employees on Tuesday, May 25, that will completely suspend production for six weeks at the São Caetano do Sul plant, in São Paulo, due to a shortage of parts and adequacy of assembly lines for the production of a new pickup truck.

The shutdown is scheduled to begin on June 21, with workers returning on August 2. However, before that, the assembler will suspend night shift production next Monday, June 1, with the exception of the body shop and paint shop sectors.

On Wednesday, May 26, GM employees in São Caetano will vote online on the proposal negotiated with the union for the suspension of employment contracts.

GM reported that the measure is necessary due to the impacts of the pandemic on the supply chain and the goal of maintaining jobs. The company also confirms that the adaptation of the plant for the production of the new pickup truck, included in the R$10 (US$1.87) billion investment plan, will also temporarily affect production.

On May 10, GM reinstated the second production shift at the São José dos Campos plant in the interior of São Paulo state, where the S10 pickup truck and the TrailBlazer SUV are assembled.

The Gravataí (RS) plant, where Onix, the country’s best-selling car, is assembled, has been shut down since March due to a shortage of components. Workers’ return to the plant, which was scheduled for early July, has been deferred to July 19, as reported by the local union.

In a statement, GM says it has been working with suppliers to restart production in Gravataí “as soon as possible.”

Source: Infomoney