Mercedes Benz and Caoa Chery factories stop production due to lack of parts

Two car factories in São Paulo announced this Thursday (24) the need to stop production due to the lack of semiconductors.

In São Bernardo do Campo, in the ABC region of São Paulo, Mercedes Benz announced collective vacations for 600 workers in the axle, exchange and truck areas.

According to the ABC Metalworkers Union, the workers will stay at home for 12 days, starting on March 14, and there is the possibility that another group will be put on vacation until the end of next month. Around 8,000 people work at the São Bernardo plant, 6,000 of them in production.

Since the beginning of the pandemic, the irregular supply of electronic components such as semiconductor chips has led to frequent interruptions in production lines.

In Jacareí, in the Vale do Paraíba region, the Metalworkers Union of São José dos Campos e Região says that Caoa Chery proposed on Thursday the adoption of a lay-off, as the temporary suspension of contracts is called, for 450 metallurgists from March.

The company’s request will be discussed at a meeting of metallurgists this Friday (25). The union wants the automaker to guarantee job stability after the return of suspended workers.

According to the metallurgists’ representative, Caoa Chery informed that it would need to suspend production due to the lack of semiconductors. The automaker has around 700 employees at the Jacareí plant.