The multinationals Chevrolet, Volkswagen and Fiat treat what happened as a suspension, and not a definitive closure of production in Brazil.

After the departure of the automaker Ford from Brazil, the global supply crisis and the pandemic, which made car factories such as Chevrolet, Honda, Audi (Volkswagen), Scania, Volvo and Mercedes-Benz, Renault and Nissan suspend vehicle production, even reached the automaker Fiat and country's auto industry may collapse.

Read also

• The Korean multinational giant LG, closes factory in SP and fires almost a thousand workers
• Ford leaving the country causes the biggest drop in industrial production in the state of Bahia
• Ford will have to pay at least R$ 130 to workers fired for paralyzing vehicle production and closing its factory in SP
• Renault and Nissan move to stop vehicle manufacturing and close their factories in Brazil, says Carlos Ghosn
• After Ford, Chevrolet, Honda and Audi withdraw or reduce production of vehicles in the country, the multinational Bosch brings US manufacturing to Curitiba
• After ending production of UP!, Volkswagen puts more than 2000 employees at its factory in SP on collective vacation

Last Monday, it was the turn of the Fiat factory, in Betim, to interrupt the second production shift due to lack of inputs, leading 1900 employees to go on vacation for the initial period of 10 days.

Fiat did not inform the volume of vehicles that will stop being produced nor the most impacted models in this stoppage. In March, the automaker also had to stop production for the same reason.

Fiat and Chevrolet face similar problems due to component shortages

The automotive market shows signs that it will still face difficulties to resume the sales pace of the pre-pandemic period and car manufacturers have more reason to be very concerned.

The most serious situation is that of Chevrolet, which paralyzed production at the Gravataí (RS) plant in April and May, where the Chevrolet Onix is ​​produced, due to the impact of the coronavirus on the supply chain.

Fiat and Chevrolet face similar problems due to component supply shortage available in the global market. Industries that depend on raw materials to manufacture their products are no longer able to produce their goods in sufficient quantity.

It is worth remembering that Honda is another manufacturer that has already had to stop the assembly line due to the lack of parts.

National Association of Motor Vehicle Manufacturers (Anfavea) was alerted

The shortage alert in the sector has been issued by the National Association of Motor Vehicle Manufacturers (Anfavea) since 2020.

Domestic manufacturers had to go out of their way to produce almost 600 vehicles in the first quarter of 2021. The effort to get the components initially involves the logistics and purchasing sectors, but the consequences even impact the frequent change (weekly or even daily). ) of each manufacturer's production mix, depending on the availability of parts.

If there is no acceleration in the supply of electronic components, it is possible that the entire automotive industry will suffer a “blackout” of raw materials (with the exception, of course, of the companies that had established previous contracts to acquire a large quantity of the components in dispute ).

The consumer will also end up paying this bill

Anyway, it goes without saying that the consumer will also end up paying this bill. In the case of the Chevrolet Onix, for example, there is a risk that market demand will greatly exceed the available supply — in other words, prices tend to increase.

For the time being, the other manufacturers operating in Brazil have not yet indicated the risk of downtime, but the Volkswagen Group has already stated that it will suffer a global reduction in the production of 100 vehicles in the first months of this year due to the shortage of raw materials..