Fiat joins VW in reducing production in Brazil image

Fiat Chrysler Automobiles decided to stop production output between April 1 and April 6 at a production facility in Brazil because the lagging sales and exports of its cars yielded a rapid surge in stock levels.

The almost 16,000 furloughed workers at the factory located in Betim, Minas Gerais, have been sent on paid leave, with a Fiat official adding that Fiat Chrysler Automobiles already decided to offer paid leaves to all of its employees from Friday through Sunday in line with the Easter holiday, ultimately deciding to add the other days as well because of high supplies. The spokesperson declined to give an exact figure of the stocks but union president Joao Alves de Almeida commented that the plant was building around 2,000 cars each day, already reducing output from its heyday producing 3,400 units just a few years ago – with enough automobiles now on parking lots for 40 sales days. “This isn’t good news — it creates a climate of apprehension between the workers who are concerned about their future and maintaining their jobs,” added the union official.

Earlier this week another local union announced German automaker Volkswagen AG had decided to send home 4,200 workers at its second-biggest assembly facility in the country for three weeks. The global automakers involved on the Brazilian auto market have started imposing plans to reduce production levels and cut expenses in the country. Brazil has seen both deliveries and production levels plummet at least 20 percent in the first two months of the year. Additionally, the auto industry wide job level has gone down 8 percent in the 12 months that ended in March.

Via Automotive News Europe