The largest US automaker, also the world’s third biggest, has recently announced it had to halt production of vehicles at an assembly facility located in the southern part of Brazil because of disagreements with the truckers delivering the autos from the factory.
Brazil, one of the biggest auto markets and the largest economy in Southern America has been free falling the past few years, with automakers that invested heavily in the emerging market now left scrambling to lower the losses. With the companies trying to become profitable again and with numerous investments that need to be recuperated, the relations between the firms and unions and trading partners have been slipping rapidly. The most recent case – GM said that transportation partners Tegma and Transzero have ceased to show up to lift the compact cars made at the factory in the southernmost state of Rio Grande do Sul, making the factory to stop production output.
The reports were also contradictory, with a representative for Transzero claiming they haven’t stop the shipments and if there was any cease of production it was attributable to third-party, or independent drivers. The factory has halted output at a moment of spare capacity across the Brazilian market, with vehicle output dropping 18 percent after the first four months of the year – exports have been lower and consumer confidence slid even further as the economy is on the brink of another recession. The shipping woes for Gm also come after another trucker protest in February paralyzed the shipping business across the country, mainly affecting the southern and Midwestern farming zones.