After Ford, multinationals Renault and Nissan may close their factories in Brazil and the automotive industry may collapse in the country
After the departure of the automaker Ford from Brazil, the global supply crisis and the pandemic caused car factories such as Chevrolet, Honda, Audi (Volkswagen), Scania, Volvo and Mercedes-Benz to also suspend vehicle production. Now, according to information provided by Carlos Ghosn, former CEO of major vehicle manufacturers, multinationals Renault and Nissan could close their factories in Brazil and the automotive industry could collapse in the country.
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The Brazilian car market has dropped from 4 million units/year to just 2 million, said former Nissan president Ghosn.
“The weakest will leave Brazil, which always happens in major crises. Among the weakest, I mention the Alliance (between Nissan and Renault), because to compete in Brazil it is necessary to have a strong automaker, with the desire to overcome the specific cycles of the local economy, and, if the company does not have this desire, it will remain all the time leaving and entering the country, firing and hiring, stopping and returning. This stop and go is very bad for the brand and for employees”, says Ghosn.
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Nissan and Renault contradict the executive and claim they have no intention of closing their factories and leaving Brazil
According to Veja magazine, both Nissan and Renault do not comment on the Carlos Ghosn case, but informed that they are committed to investing in Brazil for the next few years. “We have no plans to leave. We have just launched a new product, manufactured in Resende”, says the Japanese automaker, which recently launched a new version of the Kicks, manufactured in Rio de Janeiro.
Renault says it will launch “five novelties by the first half of 2022, including the renewal of vehicles in the current range and a turbo engine, which will be imported. In addition, two electric vehicles will be launched in the same period”. According to the company, there was a recent investment of 1,1 billion reais in the country, and "reaffirms the importance of the Brazilian market for the Renault Group.”
Multinationals announced temporary closure of factories, because of the increase in cases of Covid-19 in the country. The Renault plant in São José dos Pinhais (PR) interrupted activities on March 29th and plans to return to April 5th. Nissan, on the other hand, stopped the factory in Resende (RJ) and gave collective vacations to its employees between March 26th and April 9th.
In a move contrary to Ford and Chevrolet, the multinational auto parts manufacturer Bosch decided to bring its US production to Brazil
The German multinational auto parts manufacturer Bosch was against the movement of car manufacturers Ford, Chevrolet, Honda, Audi, (Volkswagen), Scania, Volvo and Mercedes-Benz, Nissan and Renault that decided to withdraw or reduce production in Brazil, and brought to Brazil the production of injectors and injector nozzles for trucks that were produced in their factories in the United States, thus expanding the diesel injection systems division at its plant in Curitiba.
Furthermore, the intention of the German multinational is to supply not only the domestic market, but also export a large amount – which can reach up to half of production.