General Motors do Brasil will fire 960 workers from its Brazilian São José dos Campos plant, in São Paulo state, due to a reduced export forecast.
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GM expects this year to export about 160,000 vehicles after shipping 208,000 units in 2005. According to GM, this is due largely to the Brazilian currency’s appreciation against the US dollar – an issue causing concern to all Brazilian automakers at the moment.
The automaker said it had lost a contract to ship the Brazilian-made Meriva minivan to Mexico because the price was now too high due to the strength of the Brazilian real. Mexico is now supplied from Spain.
GM will now cut until July a shift assembling passengers cars at São José dos Campos. The track building the Corsa, Meriva and Montana compact pick-up will work one shift and the Meriva will be made on the same assembly line as the S10 pick-up and Blazer SUV.
At the beginning of the month Volkswagen announced a restructuring plan for Brazil, citing the Brazilian currency’s appreciation against the US dollar.
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By GlobalDataBut GM said that, in the second half of the year, it will hire 970 workers for its Gravataí plant, in Rio Grande do Sul state.
The new employees will assemble the Celta sedan to be introduced in Brazil at the end of the year.
Rogério Louro
