Mercedes-Benz Announced Today the Closure of One of Its Plants in the State of São Paulo

Written by Roberta Souza

Published on 17/12/2020 at 14:09

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The German Vehicle Manufacturer Mercedes-Benz Closes Factory in Iracemápolis, São Paulo, Citing Brazil’s Poor Economic Situation

Mercedes-Benz, the German vehicle manufacturer, announced this morning the closure of its factory in Iracemápolis, located in the interior of the State of São Paulo. The unit was responsible for the production of the C-Class — which in the EQ Boost version was the first hybrid assembled in Brazil — and the GLA. After the closure, the company halted car production in Brazil.

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The automaker’s decision was made based on several factors, including the current state of the Brazilian market. Due to the closure of the site, approximately 370 employees may be laid off. Mercedes-Benz stated in the report that it is seeking alternatives, such as voluntary layoff plans and other possibilities under evaluation.

In addition to the recently closed factory, Mercedes has factories in São Bernardo do Campo (SP) and Juiz de Fora (MG), responsible for producing truck and bus chassis in Brazil.

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Jörg Burzer, Member of the Board of Mercedes-Benz AG, Production and Supply Chain, said, “The economic situation in Brazil has been difficult for many years and has worsened due to the Covid-19 pandemic, causing a significant decline in premium car sales. Throughout our transformation process, we continue to restructure our global production network. Increasing our efficiency by optimizing our utilization capacity is an important facilitator.”

“Therefore, we decided to end premium car production in Brazil. Our first objective now is to find a sustainable solution for the employees of this unit, who have contributed significantly to Mercedes-Benz’s success in Brazil with their commitment and expertise in recent years,” concludes Jörg Burzer.

For future customers, the automaker will import models from other factories in its global production network. For its dealerships, around 50 in Brazil, nothing will change.

Mercedes-Benz Announced Today the Closure of One of Its Plants in the State of São Paulo

The German Vehicle Manufacturer Mercedes-Benz Closes Factory in Iracemápolis, São Paulo, Citing Brazil’s Poor Economic Situation

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