Multinational General Motors Suspends Production at SP Factory, 250 Metalworkers Have Employment Contracts Suspended

After Volkswagen and Ford, Multinational General Motors Suspends Production at SP Factory and 250 Metalworkers Accept Suspension of Work Contracts in Exchange for Job Stability

Multinationals General Motors, Yamaha, Chevrolet, Volkswagen, and Fiat treat the situation as a suspension, not a definitive shutdown of production in Brazil. Following Ford’s exit 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 also reached General Motors, and the automotive industry in the country could collapse.

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On May 25, Multinational General Motors (GM) informed its employees that it would completely halt vehicle production at its factory in São Bernardo do Campo (SP). At the time, the automaker claimed that the reason was due to a lack of parts and the need to adapt the assembly lines for the production of a new pickup truck.

Last Thursday, about 250 metalworkers at General Motors in São José dos Campos (SP) accepted a new suspension of work contracts, after the automaker agreed to provide job stability for all employees at the factory.

According to the Metalworkers Union of São José dos Campos, contracts for up to 250 employees at the General Motors factory will be suspended from July 12 to August 25, with the period possibly being extended. Under current legislation, the suspension of contracts can be done for up to 120 days.

General Motors Factory in SP Employs About 3,800 Workers

The Union also stated that the initial proposal presented by the automaker did not provide job stability for all at the General Motors factory, offering the benefit only to those whose contracts were suspended. The inclusion was a requirement of the category.

Multinational General Motors stated that the need for contract suspensions arises due to a lack of parts affecting the automotive sector. This week, the automakers association (Anfavea) mentioned a scarcity of electronic components for assembling vehicles in the sector, an issue that may only start to be resolved from mid-next year.

The General Motors factory in São José dos Campos produces the S10 pickup and the Trailblazer utility vehicle and employs about 3,800 workers, the union stated.

After Halting Vehicle Production and Leaving the Country, Ford Closes Another Operation in Brazil and Assumes Billion-Dollar Expense

The multinational car manufacturer Ford has immediately ceased production in Brazil of its three vehicles: Ka, Ka Sedan, and EcoSport, to import around 30,000 cars produced in its factories abroad.

Now, the company announced that Ford Credit will cease operations in Brazil and Argentina. With this decision, the company will incur a billion-dollar debt that could reach up to US$ 375 million (approximately R$ 1.85 billion at current exchange rates).

As if that weren’t enough, the Troller factory will be sold, and 470 employees may find themselves unemployed in Ceará. Ford also has the Troller factory in Horizonte (CE). The line will continue producing the 4×4 T4 utility vehicle until the end of this year, unless the blue oval finds a buyer before that.

Without factories in the country, the “new Ford” is also reducing its dealer network, which before January 11 had over 280 authorized dealers, a number that will fall to approximately 120.

After Volkswagen, Ford, Honda, Audi, and Volvo, Renault Announces the End of Production of Gasoline and Diesel Combustion Engines 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 is the turn of the French automaker Renault to focus on electric cars. Luca de Meo, head of Renault – multinational manufacturer of the Kwid, Logan, Duster, and Sandero cars – confirmed to the market that it will only update existing combustion engines, adapting them to new emission standards until the end of their life cycle.

The decision of the French automaker Renault aligns with what has been announced by some automakers and countries, such as Germany and the United Kingdom.

Rules related to carbon emissions are tightening, leaving vehicle manufacturers with limited options for gasoline and diesel combustion engines, and automakers are racing to adapt to this emerging market reality of acquiring hybrid or electric vehicles.