GM in Brazil has said it will dismiss 1,633 temporary employees and send another 900 on paid leave, denting hopes that Brazil’s auto industry sector can escape the worst effects of the international financial crisis that has hit sales.
All of the dismissed will be from GM factory in Sao Caetano do Sul, while the workers to be on a 30-day paid leave are from this factory and the one in Sao Jose dos Campos, GM said.
According to the company, 30 employees will be laid off each day on Thursday and Friday. From Monday on, each business day will see 50 employees laid off until April.
Jaime Ardilla, GM President for Brazil and Mercosul, said the dismissals are not part of the 47,000 cuts announced by the GM headquarters last week.
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In January, General Motors had announced dismissing 744 employees from its Sao Jose dos Campos factory, most of whom were also temporary workers.
Tax breaks helped Brazilian car sales in December and January, but analysts continue to worry about prospects as economic growth in Brazil slows.
