BRAZIL: GM postpones layoffs, avoids strike
General Motors' Brazilian unit at the weekend avoiding a looming strike by delaying the layoff of up 750 workers until the end of the year and promising to spend about BRL500m (US$246m) at its Sao Jose dos Campos facility.
On Sunday, it announced it would add a third shift at its Gravataí Industrial Complex, creating 1,450 new jobs at the assembly plant and another 1,000 at supplier plants located at the facility.
The Sao Jose dos Campos accord, reached late on Saturday with leaders of the metalworkers union, delayed GM's politically sensitive efforts to shut down what it called an uncompetitive assembly line in that city, Reuters reported.
The Sindimetal-SJC union said on its website the workers are members of the production line for the Classic model.
Since last year, GM has faced pressure from President Dilma Rousseff to retain workers in exchange for tax breaks that helped lift sales in the world's fourth-largest car market to a record high last year.
But auto production in Brazil's auto industry fell for the first time in a decade and productivity plunged to a six-year low, as rising wages, transportation bottlenecks and rigid labour laws eroded the competitiveness of local factories.
A tight job market has forced companies to concede steep wage increases. Unemployment has fallen to record lows despite two years of disappointing economic growth.
GM's complex in Sao Jose dos Campos, near the city of Sao Paulo, produces the Chevrolet Classic at the assembly line in question plus the Blazer, S10 pickup, engines and transmissions on other lines, employing over 7,000 workers.
Quarterly results season is with is again with some passable numbers from the biggies already in and more to come. As usual, we have grouped the coverage together in one handy spot....
The Toyota group sold 4.91m units in the first half of 2013, making it the world's top car seller in the period for the second straight year....
General Motors has announced second quarter net income of US$1.2bn, or $0.75 per share. Special items reduced net income by $0.2bn, or $0.09 per share, the automaker noted. This was a $240m "loss on e...
In one of the biggest automotive recalls in India, US car major General Motors on Wednesday red flagged 114,000 units of its Chevrolet Tavera utility vehicle produced since 2005 for a faulty emissions...
After two decades of domination, Japanese and European models have lost the number one sedan spot in the US to one of the most iconic of American automotive names....
General Motors (GM) India will restart production of Chevrolet Sail diesel models by the end of July. The company temporarily suspended production in June due to quality issues. The automaker will als...
Detroit's bankruptcy filing is linked with problems that sent General Motors and Chrysler into their own bankruptcy reorganisations, GM CEO Dan Akerson has said....
- THE WEEK THAT WAS - Diesel developments
- Comment - emissions 'failures' hardly a surprise
- ANALYSIS - supercharged Jaguar XF
- ANALYSIS - 2016 Kia Carnival Platinum
- RESEARCH SNAPSHOT - Moving closer to self-driving
- JLR achieves aluminium recycling milestone
- Ford launches new EcoBlue 'Euro VI' diesel engine
- Ford books record Q1 pre-tax profit
- FCA to retool Trenton engine plant for new I4
- Ford spending $1.6bn on US plants