General Motors do Brasil will extend by a week compulsory vacation for 420 workers at its São José dos Campos plant, in São Paulo state.

On 20 September the automaker ordered these employees to take two weeks of vacation ending on 3 October, but now they will return to the assembly line on 10 October.

GM is using the compulsory vacation to adjust output for low export demand for its S10 pick-up and Blazer SUV.

The company blamed the continuing strengthening of Brazilian currency against the dollar and is ending the second shift on the S10 and Blazer assembly line.

However, the export fall is not the only reason for the employee furlough. The São José dos Campos plant has an excess of about 600 workers due to the transfer of some internal production to outside suppliers.

The automaker is discussing ways of cutting the excess workforce with with the employees’ union.

Rogério Louro