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

After departure of the automaker Ford from Brazil, the global supply crisis and the pandemic have caused numerous car factories such as Chevrolet, Honda, Audi (Volkswagen), Scania, Volvo, Mercedes-Benz, Renault, Nissan, Fiat and Yamaha to suspend vehicle production. Now chaos has arrived, too, until automaker General Motors and the country's auto industry may collapse.

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• Multinational Volkswagen unveils its iconic all-electric Kombi; the very rare classic manufactured in 1973 by the automaker is one of the few left in the world
• Ford Motor 'toasted' 61 billion reais by deciding to close factories, stop vehicle production and leave Brazil
• After Ford gives up on the country, multinational Volkswagen announces a new cycle of investment and production of vehicles in a factory in SP
• Contrary to Volkswagen, Renault, Honda and Volvo, the multinational Toyota refuses to end production of gasoline and diesel combustion engines
• After Volkswagen, Ford, Chevrolet and Fiat, the multinational Yamaha suspends production of motorcycles in its factories and puts employees on collective vacations
• Honda, one of the world's leading automobile and motorcycle manufacturers, stops developing and manufacturing gasoline and diesel combustion engines
• After interrupting vehicle production and leaving the country, Ford Motor unloads 450 cars at the port of ES and will bring 30 vehicles to Brazil produced in factories abroad

Yesterday (25/05), the multinational General Motors (GM) communicated to its employees that it will completely stop the production of vehicles at the factory in the ABC region of São Paulo (SP). According to the automaker, the reason is due to the lack of parts and adequacy of the assembly lines for the production of a new pickup truck.

Next Monday (01/06), General Motors will suspend the night production journey, with the exception of the bodywork and painting sectors. Today, the 26th, GM employees in São Caetano vote, so online, the proposal negotiated with the union for the suspension of employment contracts.

General Motors suspends production of vehicles at the ABC Paulista (SP) factory for 6 weeks

General Motors also informed that the start of the total shutdown of the ABC Paulista factory is expected to take place on the 21st, when production will be suspended for six weeks and the workers will return only on the 2nd of August.

According to GM, the stoppage is necessary given the impacts of the pandemic on the supply chain and the objective of maintaining jobs. The automaker also confirms that the adaptation of the factory for the production of the new pickup, foreseen in the R$ 10 billion investment plan, also temporarily affects production.

The second production shift at the factory in São José dos Campos, in the interior of São Paulo, was resumed by GM on the last 10th. It is in this factory that the S10 pickup truck and the TrailBlazer sport utility vehicle are assembled.

The factory in Gravataí (RS), where the Onix, the best-selling car in Brazil, is manufactured, has stopped production since March, due to a lack of components. The return of workers from the complex, which was scheduled for the beginning of July, has been postponed to July 19, according to the local union.

The multinational GM said, through a note, that it has been working with suppliers to resume production in Gravataí “as soon as possible”.

Ford Motor 'toasted' 61 billion reais by deciding to close factories, interrupt vehicle production and leave Brazil. The multinationals Volkswagen, GM and Toyota also accumulate billionaire losses in the country

Ford Motor accumulated a loss of R$ 61 billion in Brazilian operation. The values ​​consider the last few years and the amount must be paid to close down activities in three factories installed in Brazil. The amount was revealed by the Reuters agency. To get an idea, the American burned the equivalent of 610 thousand EcoSport Titanium 1.5 AT 2021.

Still according to Reuters, at least three other automakers accumulate billionaire losses in Brazil: “Volkswagen Brasil accumulates losses of US$ 3,7 billion (R$ 19,5 billion) since 2011, according to Jucesp records. GM Brasil has received US$ 2,2 billion (R$ 11,6 billion) in cash injections since 2016, and Toyota Brasil, last year, received forgiveness for US$ 1 billion (R$ 5,3 billion) in debts to the parent company, the documents showed”.

After Volkswagen, Ford, Honda, Audi and Volvo, Renault announces the end of production of combustion engines, gasoline and diesel to focus on electric and hybrid cars

Automotive industry giants such as Volkswagen, Ford, Honda and Volvo have announced that they have already stopped or will stop the development and production of gasoline and diesel combustion engines. Now it's time for French automaker Renault to focus on electric cars. Luca de Meo, boss of Renault  — multinational manufacturer of the Kwid, Logan, Duster and Sandero cars, confirmed to the market that it will only update the combustion engines that already exist, adapting them to the new emission standards until the end of their life cycle.

The decision of the French automaker Renault is in line with what has been announced by some car manufacturers and some countries, such as Germany and United Kingdom.

The rules related to carbon emissions are increasingly strict, not leaving much option to the manufacturers of vehicles with combustion, gasoline and diesel engines, and automakers are rushing to adapt to this emerging market reality in acquiring hybrid vehicles or electrical.