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Chevrolet Announces Partial Shutdown of Its Plant for Three Months, Impacting Thousands of Workers and Production of 15,000 Onix and Onix Plus.
The Brazilian automotive industry faces a new period of adjustments, reflecting market behavior and manufacturers’ strategies.
Chevrolet, one of the most traditional brands in the sector, confirmed a partial shutdown at its Gravataí unit in Rio Grande do Sul, directly impacting the production of the Onix and Onix Plus, two of its most popular models in the country.
The decision, revealed by the Autoesporte portal this Friday (07), affects workers and is expected to result in a significant reduction in the volume of vehicles produced.
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Shutdown and Layoff at GM
According to Valcir Ascari, president of the Metalworkers’ Union of Gravataí, workers at the unit will enter layoff starting April 22, with a forecast for return in 90 days.
During this period, the manufacturer will stop producing approximately 15,000 units of the Onix and Onix Plus models.
According to Autoesporte, contacted for a statement, General Motors confirmed the measure and clarified that it is “a temporary suspension of employment contracts (layoff), which will partially affect production.”
The company emphasized that the initiative aims to align production with market demand.
Another Shutdown at the Unit
This is the second interruption announced for the Gravataí plant in 2025. Less than two weeks prior, Chevrolet had informed that the production line would be halted between February 17 and March 17, using leave and collective vacation arrangements.
At that time, the company justified that the measure was “necessary for the updating and modernization of processes in some production areas.”
Union Attempts to Negotiate Conditions
Although the shutdown has already been confirmed, the workers’ union is seeking to reduce the layoff period from three months to two months and eight days.
Additionally, the entity is negotiating the maintenance of benefits such as the food allowance during the employees’ leave.
GM acknowledged the ongoing negotiations and informed, through a statement, that “it is in negotiation with the Metalworkers’ Union of Gravataí.”
High Inventories and Decline in Sales
Although the manufacturer has not provided details about the motivations for the shutdown, Autoesporte claims to have determined that two main factors influenced the decision. One of them is the high volume of vehicles in stock.
According to industry sources, since the end of January, the manufacturer has faced difficulties in reducing stocks, which have remained at the level of 20,000 units accumulated between October and November of the previous year.
Another point of concern is the commercial performance of the Onix and Onix Plus. Data from the National Federation of Motor Vehicle Distribution (Fenabrave) show that, in 2024, the Onix had 97,503 licensed units, a decline of 4.5% compared to 102,043 registrations in 2023.
The Onix Plus showed an even more significant contraction, with 59,960 licensed units in 2024 against 74,887 in 2023, representing a reduction of approximately 20%.
Investments and Preparation for New Model
The second factor influencing the shutdown is related to the factory’s preparation for the production of the new version of the Onix.
The model’s redesign is expected in the coming months and is part of GM’s investments in Brazil.
The manufacturer plans to invest R$ 7 billion in the country by 2028, with R$ 1.2 billion specifically allocated to the Gravataí unit.
In addition to the new Onix and Onix Plus, the factory will also be responsible for producing an entry-level SUV for the brand.
With these changes, industry sources speculate that production may stabilize and eventually allow the return of the third work shift, suspended since the pandemic.
Future Scenario and Sector Expectations
The shutdown reflects a transitional moment for GM and the Brazilian automotive industry.
With a more cautious market and fluctuating demand, manufacturers need to balance production and sales to avoid high inventories.
The arrival of a new model and investments in the modernization of the Gravataí unit may indicate a more stable future recovery.
According to experts, it remains to be seen how the market will react to the new version of the Onix and whether the strategies adopted by GM will ensure production stability in the coming years.
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