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The German vehicle manufacturer Mercedes-Benz, closes factory in Iracemápolis, in São Paulo and cites the bad 'economic situation' in Brazil
Mercedes-Benz, a 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 producing the C Class — which in the EQ Boost version was the first hybrid assembled in Brazil — and the GLA. After the closure, the company stopped producing cars in Brazil.
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The automaker's decision was taken based on several factors, including the current state of the Brazilian market. Due to the site closure, approximately 370 employees may be laid off. Mercedes-Benz said in the report that it is looking for alternatives, such as voluntary redundancy plans and other possibilities, which are 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 the production of 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 drop in premium car sales. Throughout our transformation process, we continued to restructure our global production network. Increasing our efficiency by optimizing our capacity utilization is an important enabler.”
“For this reason, we decided to end the production of premium cars in Brazil. Our first objective now is to find a sustainable solution for the employees of this unit, who have contributed decisively to the success of Mercedes-Benz 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 resellers of this brand, which are around 50 in Brazil, nothing will change.
