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Multinationals Chevrolet, Volkswagen, and Fiat Treat the Event as a Suspension and Not a Definitive Shutdown of Production in Brazil, Just Like Ford
After Ford’s exit from Brazil, the global supply crisis and the pandemic caused numerous auto factories, such as Honda, Audi (Volkswagen), Scania, Volvo, Mercedes-Benz, Renault, Nissan, Fiat, and Yamaha to suspend vehicle production. Now chaos has also reached the Chevrolet factory, and the country’s automotive industry may be on the brink of collapse.
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The Chevrolet multinational had to halt the production of Chevrolet Onix and Onix Plus in Gravataí (RS) until June, and now the latest suspension is at the factory in São Caetano do Sul (SP), which is responsible for producing Tracker, Onix Joy, Onix Plus Joy, and Spin. The automaker announced the decision to employees and confirmed it in a statement sent to the press.
According to Chevrolet, the reason for the suspension of vehicle manufacturing at its factories is a lack of parts and also to initiate preparations for assembling a new pickup at the complex, scheduled for next year and which will be positioned below the S10.
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According to Broadcast Estadão, production at São Caetano do Sul began its suspension last Monday (31), when part of the night shift stopped, except for bodywork and painting. After this, the complex will have its production fully suspended on June 21, with a forecast to return on August 2.
“As we announced recently, the GM factory in São Caetano do Sul (SP) will begin to be prepared to receive a new product that will complement Chevrolet’s pickup line in the future, within the new investment plan of R$ 10 billion. The necessary adjustments in the assembly line, arising from this process, will temporarily impact production. Considering the dynamics of the pandemic’s impacts on the supply chain, which continues, and the objective of maintaining jobs, we are negotiating with the union temporary suspension measures for the employment contract,” Chevrolet states in a note.
In Addition to Chevrolet, the Lack of Semiconductors Has Affected Automakers Such as Honda, Audi (Volkswagen), Scania, Volvo, Mercedes-Benz, Renault, Nissan, Fiat, and Yamaha
The lack of semiconductors has greatly affected manufacturers, such as Honda, Audi (Volkswagen), Scania, Volvo, Mercedes-Benz, Renault, Nissan, Fiat, Yamaha, and especially Chevrolet, as previously announced by Click Petróleo e Gás.
The Onix and Onix Plus models, made in Gravataí, continue with production suspended due to this parts supply shortage and were initially scheduled to return in June. The local union reports that the return has been postponed to July 19. The complex in São José dos Campos (SP), which produces S10 and Trailblazer, also had its production pace reduced to only one shift, now returning to assemble the 2022 model line of the pickup.
“The automotive supply chain in South America has been impacted by production stoppages during the pandemic and by a faster-than-expected market recovery. This is temporarily affecting our production schedule in Brazil. As a result, production at the Gravataí plant has been halted since April. We are working with our suppliers to mitigate this impact and resume production as quickly as possible,” the automaker states in a note.
According to Chevrolet, one of the reasons for the factory shutdown is the adjustment of the assembly line for a new model, a pickup that will be positioned below the S10. The automaker also confirmed that it will use the platform of Onix, Onix Plus, and Tracker, indicating that it will be a unibody pickup in the style of the Fiat Toro. The launch is expected only for 2023 and will replace the Montana, which had its production halted in Brazil.
Ford Motor ‘Burned’ 61 Billion Reais Deciding to Close Factories, Halt Vehicle Production, and Leave Brazil. Multinationals Volkswagen, GM, and Toyota Also Accumulate Billion-Dollar Losses in the Country
Ford Motor accumulated a loss of R$ 61 billion in its Brazilian operations. The amounts consider recent years, and the total will need to be paid to terminate activities at three factories located in Brazil. The figure was revealed by Reuters. To give an idea, the American company spent the equivalent of 610,000 EcoSport Titanium 1.5 AT 2021.
According to Reuters, at least three other automakers are also accumulating billion-dollar losses in Brazil: “Volkswagen Brazil has accumulated losses of US$ 3.7 billion (R$ 19.5 billion) since 2011, according to Jucesp records. GM Brazil received US$ 2.2 billion (R$ 11.6 billion) in cash injections since 2016, and Toyota Brazil, last year, received forgiveness for US$ 1 billion (R$ 5.3 billion) in debts with the parent company, documents showed.”
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