Unlike Ford, Which Halted Its Vehicle Production and Left Brazil, Volkswagen, Renault, General Motors, and Fiat Treat the Situation as Temporary.
After Renault and Volkswagen suspended contracts and announced plans for voluntary and involuntary layoffs due to being affected by the lack of parts and imported components, the automaker Fiat reports that it is facing the same issue, announcing that 1,800 employees at the Betim factory had their work contracts suspended yesterday (10/04) for three months (called lay-off).
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The employee who joins the program will receive government subsidies under the Emergency Employment and Income Maintenance Program of the Ministry of Economy, and will have the complement paid by the automaker itself.
The Action Could Affect Up to 6,500 Fiat Workers
The suspension of work contracts was approved by 98.08% of the factory workers who voted in an assembly last Thursday (23). It was only defined that the measure could be implemented over the next 12 months involving a maximum total of 6,500 workers, with those already in lay-off not being able to be suspended again through the same process.
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Fiat stated in a note that the measure is a consequence of the impact of the health crisis and its implications for the economy, which exacerbated the global shortage of inputs, notably electronic components, compromising the ability to maintain predictable production pace and volume.
“The suspension of the work contract for professional training preserves the jobs of the involved workers and ensures the rights established in the collective labor agreement, in addition to offering professional qualification, job stability proportional to the period of leave, and the payment of a scholarship to preserve purchasing power,” the automaker informed in a statement.
According to Fiat, the company expects the normalization of supplies and the resumption of production volumes as soon as possible.
General Motors Is the Most Affected Automaker in Brazil with Its Gravataí, RS Factory Stopped for Over Five Months
The automaker most affected in the country by the lack of consumers so far has been General Motors, which had its Gravataí, RS factory halted for over five months. Production resumed in August in just one shift, and last week, the new president of GM South America, Santiago Chamorro, announced the implementation of a second shift in October.
Facing fewer problems than its main competitors over the past months, Fiat had been gaining market share in Brazil, comfortably leading the ranking of the most registered brands and models in the country.
Volkswagen Announces the End of the Fox, Launched in 2003, the Car Emerged to Replace the Gol in the Hearts of Brazilians
Another farewell. Designed by Volkswagen to replace the Gol in the hearts of Brazilians, the Fox is counting down its days and will say goodbye to the national market after 18 years. UOL columnist Jorge Moraes reported that the compact will leave production at the São José dos Pinhais (PR) factory after nearly two decades to make way for the growth of the T-Cross.
Launched in 2003, the hatch emerged as an alternative to the Volkswagen Gol, with a higher body, even being exported to Europe, and according to Calmon, will cease to be offered in our market in December. The journalist also states that the “older siblings” Gol, Voyage, and Saveiro will have an extended life until 2024, and their replacements are already in development.
The Fox made an immediate impact in Brazil and since then, resisted being discontinued in Europe and remained strong in the Brazilian market. Its appeal more aimed at the female audience reminds me of the campaign featuring the charming Ana Hickmann, with her 1.86 m height.

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