After Volkswagen, Ford, Chevrolet, Fiat, and Yamaha, Multinational General Motors Suspends Production at SP Factory and Negotiates, on This 26th, the Suspension of Employment Contracts

Multinationals General Motors, Yamaha, Chevrolet, Volkswagen, and Fiat Treat the Incident as a Suspension, Not a Definitive Closure of Production in Brazil

After the exit of Ford from Brazil, the global supply crisis and the pandemic caused numerous automobile factories, such as Chevrolet, Honda, Audi (Volkswagen), Scania, Volvo, Mercedes-Benz, Renault, Nissan, Fiat, and Yamaha to suspend vehicle production. Now chaos has reached General Motors as well, and the automotive industry in the country may collapse.

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• Ford Motor ‘Burned’ 61 Billion Reais Deciding to Close Factories, Halt Vehicle Production, and Leave Brazil
• After Ford Gave Up on the Country, Multinational Volkswagen Announces a New Cycle of Investments and Vehicle Production in SP Factory
• Against the Trend of Volkswagen, Renault, Honda, and Volvo, Multinational Toyota Refuses to End Gas and Diesel Combustion Engine Production
• After Volkswagen, Ford, Chevrolet, and Fiat, Multinational Yamaha Suspends Motorbike Production in Its Factories and Places Employees on Collective Vacation
• Honda, One of the Most Important Automobile and Motorcycle Manufacturers in the World, Stops Developing and Manufacturing Gas and Diesel Combustion Engines
• After Halting Vehicle Production and Leaving the Country, Ford Motor Unloads 450 Cars at the ES Port and Will Bring 30 Thousand Vehicles to Brazil Produced in Factories Abroad

Yesterday (05/25), multinational General Motors (GM) informed its employees that it will completely halt vehicle production at its factory in ABC Paulista (SP). According to the automaker, the reason is due to a lack of parts and the adaptation of assembly lines for the production of a new pickup truck.

Next Monday (06/01), General Motors will suspend the night production shift, except for the bodywork and painting sectors. Today, 26, GM employees in São Caetano are voting online on the proposal negotiated with the union to suspend labor contracts.

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General Motors Suspends Vehicle Production at ABC Paulista (SP) Factory for 6 Weeks

General Motors also reported that the start of total stoppage of the ABC Paulista factory is scheduled to happen on the next day 21, during which production will be suspended for six weeks and workers will return only on August 2.

According to GM, the stoppage is necessary due to the pandemic’s impact on the supply chain and the goal of maintaining jobs. The automaker also confirms that the adaptation of the factory for the production of the new pickup, planned in the R$ 10 billion investment plan, also temporarily affects production.

The second production shift at the São José dos Campos factory, in the interior of São Paulo, was resumed by GM on the last day 10. This factory produces the S10 pickup and the TrailBlazer sport utility vehicle.

Meanwhile, the Gravataí (RS) factory, where the Onix, Brazil’s best-selling car, is manufactured, has been halted since March due to a lack of components. The return of workers from the complex, which was expected for early July, has been postponed to July 19, according to local union reports.

The multinational GM stated in a note that it has been working with suppliers to resume production in Gravataí “as quickly as possible.”

Ford Motor ‘Burned’ 61 Billion Reais Deciding to Close Factories, Halt Vehicle Production, and Leave Brazil. Multinationals Volkswagen, GM, and Toyota Also Accumulate Billion-Dollar Losses in the Country

Ford Motor recorded a loss of R$ 61 billion in its Brazilian operations. These figures take into account recent years, and the amount will need to be paid to close operations at three factories located in Brazil. The amount was revealed by Reuters. To provide some context, the American company burned the equivalent of 610 thousand EcoSport Titanium 1.5 AT 2021.

According to Reuters, at least three other automakers have also accumulated billion-dollar losses in Brazil: “Volkswagen Brazil has accumulated a loss of US$ 3.7 billion (R$ 19.5 billion) since 2011, according to Jucesp records. GM Brazil has received US$ 2.2 billion (R$ 11.6 billion) in cash injections since 2016, and Toyota Brazil received forgiveness for US$ 1 billion (R$ 5.3 billion) in debts with the parent company last year, as documents show.”

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

The decision by French automaker Renault aligns with what has been announced by a few automakers and some countries, like Germany and the United Kingdom.

Carbon emission regulations are becoming increasingly stringent, leaving vehicle manufacturers with few options for combustion engines, and automakers are rushing to adapt to this emerging market reality of acquiring hybrid or electric vehicles.