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Multinationals Scania, Volvo, and Mercedes-Benz Treat the Incident as a Suspension and Not a Definitive Shutdown of Production in Brazil
After the major exit of automaker Ford from Brazil and the stoppage of Chevrolet, Honda, and Audi, it is now the turn of multinationals Scania, Volvo, and Mercedes-Benz to suspend vehicle production in Brazil, and the automotive industry could collapse in the country. Looking for a job? 517 job openings, internships, and apprenticeships to work at multinational Ambev, the largest beverage company in the world, today March 24
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The decision to stop production made by the world’s leading multinational automobile manufacturers was driven by a lack of parts and also to help reduce the spread of the coronavirus.
Mercedes-Benz announced yesterday afternoon (03/23) that it will halt vehicle production in São Bernardo do Campo (SP) and Juiz de Fora (MG). According to the company’s statement, the suspension will occur starting on the 26th with a planned return on April 5.
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This decision, which was aligned with the Metalworkers Union, aims to reduce the circulation of people and also manage the difficulties in supplying parts and components in the supply chain.
According to the National Association of Motor Vehicle Manufacturers (Anfavea), the main supply issue is related to the delivery of semiconductors and other electronic items. There is also a lack of other parts, although in a more specific manner, such as rubber, plastic, resin, and steel.
Not to Mention Chevrolet, Honda, Audi, and Mercedes-Benz, Volvo and Scania Also Suspend Vehicle Production Due to Lack of Supplies
Last Friday, Volvo announced that by the end of this month it would drastically reduce production at its factory in Curitiba, Paraná, also due to a lack of parts and the worsening pandemic situation.
Volvo will cut its truck production at the Curitiba facility by 70% and is expected to remain at that level until the end of the month. “The reason is the high level of instability in the global and local supply chain of parts, especially semiconductors, combined with the worsening of the pandemic,” Volvo informed.
Scania will halt production in São Bernardo do Campo starting on March 26, with a planned return on April 5. The company recalls that it was the first automaker to return to work in April 2020, at the beginning of the pandemic, with the “production system adapted to the strictest health and hygiene protocols.”
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