After Fiat and Renault, Volkswagen, The Largest Car Manufacturer in The World, Halts Production at São Paulo Plant and Puts 800 Workers on Collective Vacation Today (10/04)

Global Crisis Due to Part Shortage Affects the Multinational Volkswagen and, Like Fiat and Renault, Interrupts Vehicle Production and Grants Collective Leaves to Employees

In an effort to adjust the production level to demand, the Volkswagen plant in Taubaté, in the interior of São Paulo, will grant collective leaves to 800 employees in the production area starting this day (10/04), according to the Metalworkers Union of Taubaté and Region (Sindimetau), which corresponds to one production shift of the Gol and Voyage models. The crisis due to the lack of components is global and other multinationals like Fiat and Renault have decided to take the same measure.

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This will be the sixth period of collective leave at the Vale do Paraíba unit, which also had 11 days of shutdown and five days of day off — both using the employees’ hour bank — due to supply chain bottlenecks. Between May 3 and 12, the factory was halted, but for another reason: to adapt production for new models built on the MQB modular structure.

“The automaker filed the notice on the last day 10. In the document, Volkswagen stated that the leaves would be for 2,000 workers, but that it might undergo changes. The measure will be applied once again due to the lack of components, mainly semiconductors, which have been experiencing supply fluctuations and hindering global vehicle production,” Sindimetau informed in a statement.

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According to the entity, currently, there are 15,000 cars parked in the factory yard waiting for parts to be completed. The number of employees on collective leave, according to the union, corresponds to one production shift. The expected return date for the workers is October 7. “This year, 11 days of ‘shutdown’ and an additional five days of ‘day off’ (both using the hour bank) have already been recorded due to lack of parts,” the entity added in a statement sent to the press.

Lack of Vehicles

With the supply shortages faced by automakers, currently, according to the National Association of Automotive Vehicle Manufacturers (Anfavea), there are only 76,400 vehicles in stock in Brazil. The number is sufficient for only 13 days of sales. The entity says this is the worst level in two decades.

Just last month, 11 automotive factories experienced total or partial shutdowns, leading the sector to produce 21.9% less compared to 2020, when there was still no shortage of inputs.

“The pandemic caused the prices of all inputs to rise. Steel, aluminum, rubber, all petroleum derivatives were impacted. The issue is that it wasn’t the sales that increased; there are simply no cars on the market. The trend is that the situation will worsen; as activities resume, people will return to spending on leisure and the money that many are investing in cars will vanish from the market, causing sales to drop with high prices,” explains the associate consultant of Bright Consulting, Cássio Pagliarini, who predicts an improvement in the scenario only from 2023 onwards.

Like Volkswagen, Renault Suspends Employment Contracts of Employees, Approves Voluntary Dismissal and, Like Fiat, Adopts Layoff

The crisis reaches the multinational vehicle manufacturer Renault! The automotive industry in Brazil is on the brink of collapse and is preparing for a year-end of low production and closed factories. So far, most automakers, like Fiat and Volkswagen, have adopted periods of collective leave, voluntary dismissal plans, suspension of employment contracts, early holidays, and days off for employees to navigate the lack of components for production, especially semiconductors.

Employees of the multinational Renault, based in São José dos Pinhais, approved yesterday afternoon (09/29) a set of measures that includes a voluntary dismissal plan (PDV), involuntary dismissal plan (PDI), reduced working hours regime, and layoff. The proposals are a result of the global components crisis that has impacted the functioning of the automotive industry. Check out the video below of SMC President, Sérgio Butka, discussing the PDV, PDI, Layoff, and working hours reduction approved at Renault

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