Important automakers in the auto industry announce a production stoppage, fueling rumors of an economic crisis in Brazil
On the last 20th, some assemblers of the automobile sector, such as Hyundai, General Motors, Stellantis and Volkswagen announced the stoppage of production in some of its factories located in Brazil. Such an announcement increased the rumors of a crisis in the sector in Brazil. According to information published in G1, automakers in the automobile sector will grant collective vacations to their employees between the end of March and the beginning of April.
Geopolitical and economic issues are among the main causes for the stoppage of automakers and shortage of parts affects Volkswagen
According to the four automakers, the stoppage of services is due to the national and global economic scenario, unlike in recent years, in which the reason for the stoppages was the shortage of parts due to social isolation as a result of Covid-19.
The Escola Educação website points to the high values of the car market, the scarcity of parts and the influence of global economic problems as the main factors cited during the announcement. Still according to the G1, the main reason for the stoppage is a reduction in demand due to the lower purchasing power of the Brazilian population and more expensive loans.
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The war in Ukraine also had an impact on the car market, mainly due to an increase in the prices of commodities needed by automakers, such as metals used in semiconductors, responsible for conducting electric currents in cars.
However, if the new fiscal policy, still under discussion, proposed by the federal government, is efficient, new investments may be attracted and the Central Bank may be able to lower interest rates, thanks to the recovery of market confidence in public spending.
According to the statement to Volkswagen, the case of the automaker differs a little from the others, since the company stated that the collective vacation of its employees will be for the maintenance of the production line, which implies a possible shortage of parts.
Can car values fall?
Despite the slowdown in sales, the direct cause of the stoppage, the prices of new cars should not be significantly reduced. That's because automakers need to keep up to date in the market, investing in innovation and efficiency. Thus, even the most popular models, such as some Volkswagen models, should not suffer a significant reduction.
According to some experts, this stabilization in prices is still the impact of the Covid-19 pandemic, as automakers are resistant to price reductions due to the large losses resulting from social isolation and the economic crisis.