The multinationals Yamaha, 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 caused numerous car factories, such as Chevrolet, Honda, Audi (Volkswagen), Scania, Volvo and Mercedes-Benz, Renault, Nissan and Fiat to suspend vehicle production. The incident also reached the Yamaha automaker and the country's automotive industry could collapse.

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Yamaha decided to suspend activities in some of its motorcycle production lines, from May 03rd to 12th, due to the adverse situation in the supply chain, resulting from the supply crisis caused by the effects of the coronavirus pandemic, in order to adjust the flowreceipt of inputs.

With the measure adopted by the company, employees belonging to the lines affected by the stoppage will be in collective vacation.

Not only Yamaha, but its competitor Honda also suspended motorcycle manufacturing

According to the company, the production of outboard motors will remain in full operation during this period, as well as the other operational activities of Yamaha Motor da Amazônia, Yamaha Motor Componentes da Amazônia and Yamaha Logística.

The motorcicle amazon honda also informed the temporary stoppage of its production line at the beginning of the year. Activities were also suspended at the time, due to the impacts of covid-19 on supply chains, which generate unavailability of inputs for production, and the worsening of the pandemic.

Fiat and Chevrolet also faced problems with component shortages.

The Fiat factory, in Betim, interrupted 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 cease to be produced, nor the models most impacted by this stoppage. In March, the automaker also had to stop production for the same reason.

The automotive market shows signs that will face difficulties to resume the pre-pandemic sales pace and automakers have more reason to be very concerned.

The most serious situation is that of Chevrolet, which paralyzed in April and May, with effects still in June, production at the Gravataí (RS) plant, 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 the shortage of components available in the global marketl. Industries that depend on raw materials to manufacture their products are no longer able to produce their goods in sufficient quantity.

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 of market demand exceeding the available supply too much — in other words, prices tend to increase.

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