Renault Decides to Extend Production Halt at Its Car Plant in São José dos Pinhais, Paraná, for Another 15 Days; Understand What Will Happen to Kwid, Duster, Captur, and Sandero

Renault Extends Shutdown Until the 27th at Its Factory in Paraná Due to the Semiconductor Crisis. This is the Second Shutdown in Production at the French Multinational’s Automobile Factory

The French multinational Renault has decided to extend the suspension of production at its automobile factory in São José dos Pinhais, Paraná, for another 15 days. Currently, the 5,000 employees who were supposed to return next Thursday (12) have been on collective vacation since July 29 and will be unable to work until August 27. The car manufacturer stated that the suspension is due to a shortage of semiconductor microchips. Employees at the light commercial vehicle unit were suspended this week and will return next Monday.

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Renault Struggles with the Shortage of Microchips

Known as the Ayrton Senna complex, the company’s automobile factory in Paraná produces the entire range of the French multinational’s brand, including Kwid, Logan, Duster, Sandero, Duster Oroch, van and Master truck, and Captur, with an annual production capacity of 220 to 320 thousand vehicles.

This is the second shutdown at Renault’s Paraná factory in months. With the extension, the car manufacturer may face a significant impact on sales next September.

In March, Renault had already announced the suspension of production at the Paraná factory, which lasted a few days, from March 29 to April 5. At that time, the company claimed that the shutdown was to contribute to social isolation due to the pandemic and was also in line with the Metalworkers’ Union of Curitiba.

Automotive Industry Companies Suspend Their Factories

At Volkswagen, employees from both shifts at the Taubaté (SP) unit entered collective vacation for 20 days; however, a small portion of them returned to operations last Monday, while another part will return next week.

In São Bernardo do Campo, also in São Paulo, there are 1,500 employees who have been on vacation since July 19 and were supposed to return this Monday (09); however, Volkswagen postponed their return for another 20 days. Fiat is another company that suspended production for one shift at its factory in Betim (MG) for ten days starting this week.

At the General Motors factory in Gravataí (RS), which has been shut down since April, one shift is scheduled to return on the 16th. In São Caetano do Sul (SP), production has been suspended since June and is expected to resume at the end of this month, at least for one shift.

Meet Renault

Renault is a multinational with over 100 years of history, and in 2018 it celebrated its 20 years in Brazil. The manufacturer is present in 128 countries across five continents and employs 122,000 people worldwide, including 7,300 Brazilians.

In Brazil, it is located in Paraná, where the Ayrton Senna Complex spans 2.5 million m², with 60% of this area preserved as forest, which is home to over 110 bird species and 28 mammals.