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Home After the departure of Ford from the country, the multinationals Honda and Chevrolet paralyze vehicle production in Brazil and the car industry may collapse

After the departure of Ford from the country, the multinationals Honda and Chevrolet paralyze vehicle production in Brazil and the car industry may collapse

4 March 2021 to 13: 12
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Honda - Chevrolet - factory - vacancies - production
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The difference is that the multinationals Honda and Chevrolet treat what happened as a suspension, and not a definitive closure of production in Brazil.

After the great departure of the automaker Ford from Brazil, Audi, the German automaker that is part of the Volkswagen group, also announced to stop the production of cars in Brazil for an indefinite period, it was the turn of Chevrolet and Honda to paralyze the production of vehicles in the country and the car industry could collapse.

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While the automotive market is showing signs that it will still face difficulties in resuming the sales pace of the pre-pandemic period, car manufacturers have more reason to be very concerned.

Earlier this week, the Gravataí assembly line (RS), where the Chevrolet Onix is ​​produced, had to interrupt its activities and will stay for at least a month with production suspended — the resumption still has an uncertain date.

The multinational Honda, on the other hand, decreed the work stoppage at its factory in Sumaré (SP) in the first 10 days of March.

Shortage of supply of electrical components also impact the production of Honda and Chevrolet vehicles

Honda and Chevrolet face similar problems due to the shortage of electrical components available in the global market, industries that depend on these raw materials to manufacture their products are no longer able to produce their goods in sufficient quantity.

To try to postpone the total stoppage of their activities, car manufacturers Honda and Chevrolet maintain the assembly of models that still have parts in large quantities in stock.

But this measure is palliative: if there is no acceleration in the supply of electronic components, it is possible that the entire automobile industry will suffer a “blackout” of raw materials (with the exception, of course, of the companies that had established prior contracts to acquire a large quantity of the components in dispute).

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..

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