Brazil’s auto parts industry has already begun to slow production to match the compulsory holidays imposed on production staff by automakers to slow vehicle output in the face of slumping demand.
Delphi and TRW Automotive have imposed similar stoppages at their plants to avoid losses from excessive stocks.
Delphi, which has 11 factories in Brazil, has been some shifts on compulsory holiday for periods of 10 to 20 days since the end of October.
“The company did not completely interrupt its production, but it is following the pace of the holidays granted by the automakers,’ a spokesman told Gazeta Mercantil.
TRW Automotive is also reducing output with compulsory holidays for production line workers.
“We are accompanying the pace of our clients, but at the end of the year (22 December to 4 January ), we will grant collective holidays to all the factories,” said director of sales and engineering Wilson Rocha.