Mercedes fires 500 workers in Brazil amid dip in sales
Advertisement
In the wake of plunging sales, German automobile manufacturer Mercedes Benz has dismissed 500 workers at its Brazilian plant near Sao Paulo, putting about 7,000 others on compulsory short-term leave as it suspends production for some time.
Mercedes Benz said on Wednesday that the workers would have to take leave between June 1 and 15 at the plant in Sao Bernardo dos Campos which employs around 10,500 to produce vans, buses and other heavy vehicles.
Reacting to sales slide, not only Mercedes but other automobile manufacturers such as Volkswagen, Ford andGeneral Motors have also put their workers on leave.
A spokesman told AFP that the decision came amid a deep slowdown in Brazilian auto and vehicle sales, with theeconomy witnessing slow growth in a fifth straight year. A contraction of around 1.0 percent forecast for this year.
According to theBrazil 's automakers' association Anfavea, vehicles production fell 17.5% to 881,770 units between January and April period and sales dropped by 19.2% to 893,630, compared to the same period last year.
The Dilma Rousseff government has reacted to the slowdown by raising interest rates to quell rising inflation , which has made credit for large-ticket purchases such as cars more expensive.
Automakers in Brazil shed over 5% of their workforce recently, adding to risingunemployment and eroding the popularity of Brazilian President Dilma Rousseff, who worked for years to shield jobs in the auto industry.
Brazil recently slid back to the world's eighth-largestvehicle producer , having made 3.15 million units last year - a 560,000 drop on 2013.
(Image: Reuters)
Advertisement
Mercedes Benz said on Wednesday that the workers would have to take leave between June 1 and 15 at the plant in Sao Bernardo dos Campos which employs around 10,500 to produce vans, buses and other heavy vehicles.
Reacting to sales slide, not only Mercedes but other automobile manufacturers such as Volkswagen, Ford and
A spokesman told AFP that the decision came amid a deep slowdown in Brazilian auto and vehicle sales, with the
According to the
Advertisement
Automakers in Brazil shed over 5% of their workforce recently, adding to rising
Brazil recently slid back to the world's eighth-largest
(Image: Reuters)
Advertisement
- In second consecutive week of decline, forex kitty drops $2.28 bn to $640.33 bn
- SBI Life Q4 profit rises 4% to ₹811 crore
- IMD predicts severe heatwave conditions over East, South Peninsular India for next five days
- COVID lockdown-related school disruptions will continue to worsen students’ exam results into the 2030s: study
- India legend Yuvraj Singh named ICC Men's T20 World Cup 2024 ambassador
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market