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April 5, 2022

Chip shortage sends Mercedes workers on enforced holiday

Automaker adjusting output due to the global semiconductor supply crisis.

By Graeme Roberts

The Mercedes-Benz Group will put over 5,000 workers on collective vacation in two commercial vehicle plants in Brazil due to the shortage of semiconductor chips, the company told Reuters.

The production stoppage would happen from 18 April to 3 May and included 5,000 employees from the Sao Bernardo do Campo plant and 600 at Juiz de Fora, in the Brazilian states of Sao Paulo and Minas Gerais, respectively, the news agency reported.

Mercedes told Reuters it was adjusting output of trucks, truck cabins, bus chassis and other auto parts due to the global semiconductor supply crisis.

The company had already put about 1,200 workers on collective vacation with pay in March because of supply chain shortages, the Sao Bernardo do Campo region metalworkers union told the news agency.

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