Ford confirmed this Thursday (19) that it will stop production at its factories in South America. Although the company produces vehicles in Camaçari (BA), Taubaté (SP), at the Troller unit in Horizonte (CE) and in Pacheco, Argentina.
The measure takes effect in Brazil on March 23 and in Argentina on the 25th. However, the objective is to limit the spread of the coronavirus.
"This additional action will help reduce the risk of the spread of Covid-19, while enhancing the health of our business during this challenging period for the entire economy", says, in a note, Lyle Watters, President of Ford America South.
Resumption of Activities
Therefore, Ford activities in Brazil should be resumed on April 13th. In Argentina, the return is scheduled for April 6.
Other automakers, although they have also announced collective vacations because of the effects of the coronavirus pandemic on the economy.
General Motors employees will stay home between March 30 and April 12. However, in a note, GM states that the objective is to adjust production to current market demand. The stoppage is valid for all five factories of the automaker in the country. The Gravataí (RS) unit produces the Chevrolet Onix, the best-selling car in Brazil.
Mercedes-Benz will be on collective vacations between March 30th and April 19th, in addition to using the bank of hours to give workers time off. The return is scheduled for April 22, but the return will depend on the situation in the country, according to the German manufacturer. The Ford company produces trucks and buses in São Bernardo do Campo (Greater São Paulo) and cars in Iracemápolis (interior of SP).
There were also layoffs. Caoa Chery laid off around 50 workers at the Jacareí plant (inland São Paulo). In a note, the automaker says that “the economic situation in Brazil at the beginning of the year, aggravated by the recent soaring of the dollar, generated a large and unexpected drop in sales in the sector.”
"This measure aims to rebalance the company's operation in the country and resist the current and expected economic scenario for the coming months", says the company. , production stoppages and relations with unions have been carried out directly by the companies. There are 67 factories in 10 states, employing around 125,000 workers.
The Coronavirus Crisis
The crisis caused by the coronavirus arrives when brands launch new high-volume domestic cars. Among the most recent models are the Renault Duster 2021, made in São José dos Pinhais, and the second generation of the Chevrolet Tracker, which is no longer imported from Mexico to be assembled in São Caetano do Sul (Greater São Paulo).
Thus, the pandemic reverses the expectations of manufacturers who planned to close 2020 in the blue after consecutive years of losses. Investments made by automakers from 2012, which exceed R$ 60 billion, have not yet been recovered.
After a first quarter of lower than expected numbers, March sales were going well. The accumulated until Tuesday (17) was close to 123 thousand registrations, with a daily average superior to 10 thousand units. The industry believed in a growth close to 10% in the month compared to February.
Although a sharp drop is expected in the coming weeks, Fenabrave (the entity that represents vehicle distributors) will wait for the April result to review its forecasts for 2020. The biggest problem will be customer flight.
In short, according to the entity, the stocks available today cover a period of 45 to 60 days of sales, which would allow deliveries to be maintained in the next month even if the factories extended their stoppage periods.
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