With the worsening of the pandemic, seven automakers suspend production in Brazil

RIO DE JANEIRO, BRAZIL – With the worsening of the pandemic and the shortage of parts in Brazil, seven car manufacturers have decided to suspend production: Toyota, Nissan, Volkswagen, Mercedes-Benz, Renault, Volvo, and Scania.

Most of the companies will give collective vacation to their factory workers while non-factory personnel will work in home office.

See details for each automaker below:

Toyota

Toyota advised that it will suspend vehicle production in Brazil starting next Monday, March 29th, after social isolation measures taken by municipal governments.

With 5,600 employees in Brazil, the company said it made the decision in conjunction with labor unions at the São Bernardo do Campo, Sorocaba, Porto Feliz and Indaiatuba plants.

The return to work at São Bernardo do Campo, Sorocaba and Porto Feliz plants is scheduled for April 5th, and at Indaiatuba, the following day.

Nissan

Nissan Brazil will interrupt production at its plant in Resende, Rio de Janeiro, between March 26th and April 9th. During this period, employees will have collective vacation.

Activities should be resumed on April 12th.

“Seeking to ensure the safety of its employees as part of the effort to reduce the impact of the pandemic, adapt the company to the current scenario of challenges faced by the automotive sector and ensure business continuity, Nissan has decided to adopt collective vacation at its Resende Industrial Complex from March 26 to April 9,” the automaker said.

Volkswagen

Volkswagen’s activities are suspended at all company units in the country between March 24th and April 4th.

According to the automaker, the decision was made in view of the growth in the number of pandemic cases and the occupancy rate of ICU beds in the country. “The company adopts this measure in order to preserve the health of its employees and their families,” it said in a statement.

Mercedes-Benz

Mercedes-Benz will suspend production at two plants, in São Bernardo do Campo (SP) and Juiz de Fora (MG). The stoppage should take place from March 26th to April 5th.

From then on, it will give collective vacations to alternate groups of employees, to reduce the circulation inside the plants. Employees from Mercedes-Benz’s administrative area will not be affected, because they are on remote work regime. According to the company, the dealerships and workshops remain in normal operations, following preventive measures against Covid-19.

Renault

According to the automaker, the decision aims to “contribute to social isolation at this time when different cities have adopted more restrictive measures, and in alignment with the Metalworkers Union of Curitiba.”

Volvo

Volvo decided to decrease truck production at the Curitiba plant by 70% starting on March 23rd and should remain until the end of the month.

“The reason is the high level of instability in the chain, globally and locally, of parts supply, mainly semiconductors, combined with the worsening of the pandemic,” Volvo said.

Scania

The Swedish assembler Scania will stop the production in São Bernardo do Campo, in the region of ABC Paulista, from March 26th, with return scheduled for April 5th.

According to the Metalworkers Union of São Bernardo do Campo region, Scania’s decision occurred after negotiation with the entity and the stoppage is due to the worsening of the pandemic and the consequent collapse in the health system throughout the country.

Source: G1