Mercedes-Benz announced 3,600 layoffs in Brazil. Workers at the company’s truck and bus chassis manufacturing plant in São Paulo state will face layoffs. The German luxury car maker said the move is being taken as part of a factory restructuring plan. However, Mercedes-Benz has taken steps to meet the challenges of rising cost pressures and changing automobile industry. As part of this initiative, the company plans to outsource the factory’s operations in Sao Paulo. The article contains Mercedes-Benz To Lay Off 3600 Workers in Brazil.
Mercedes-Benz said the company will outsource the production of front axles and gearboxes, as well as logistics and maintenance services. In this case, priority will be given to local institutions; the German organization has also said. Besides, the company also announced to increase in focus on core business. This includes bus chassis and truck production. In a statement, Mercedes-Benz said the company will lay off 2,200 workers at its Sao Bernardo plant. Besides, the contract period of 1 thousand 400 workers working on a temporary basis will not be extended after December.
Meanwhile, Sindicato dos Metallurgiques do Grande, the main union for the company’s workers, told ABC that union leaders recently met with Mercedes-Benz’s board. In the meeting, the organization’s representatives requested to start the discussion on layoffs. Union leaders are scheduled to sit down and discuss the issue with workers.
The factory has 8-9 thousand workers, including 6 thousand production workers. Mercedes-Benz laid off 600 factory workers earlier this year due to a parts shortage. The company also has a truck manufacturing plant in Juiz de Ferra. In the past few years, many car manufacturers in São Paulo have faced the closure or restructuring of factories. For example, Ford’s São Bernardo do Campo plant has been closed since 2019 before announcing in 2021 that it would move production out of Brazil. In 2021, Mercedes sold its Erasemapolis, Brazil factory to China’s Great Wall Motors. The factory produced luxury cars for the German manufacturer.
In April 2022, Toyota also announced the closure of the Sao Bernardo do Campo factory. It was Toyota’s first factory outside of Japan.
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