GM plans to increase shutdown of Brazil auto manufacturing by 60 days

(This April 9 story corrects begin date of manufacturing shutdown to March 23, with furloughs beginning on March 30.)

FILE PHOTO: Vehicles are pictured on the Basic Motors Co plant, that may give break day to its staff in the course of the coronavirus illness (COVID-19) outbreak, in Sao Jose dos Campos, Brazil March 19, 2020. REUTERS/Roosevelt Cassio

By Marcelo Rochabrun

SAO PAULO (Reuters) – Basic Motors Co (GM.N) plans to maintain its Brazilian factories shut down for no less than 60 extra days as a result of coronavirus disaster, the corporate stated Thursday, as the ultimate batch of unionized employees voted on the automaker’s proposal.

GM’s crops in Brazil have been shuttered since March 23. On March 30 the corporate put its employees on furlough, however saved their pay intact because it made staff burn up trip days.

However because the pandemic has worsened globally and vacation allotments have dried up, GM has needed to search for extra drastic measures in South America’s prime auto producer. Now its factories in Brazil, the place for a number of years Chevrolet has been the nation’s greatest promoting model, can be shut down no less than till mid June.

The timeline places Brazil behind the schedules set by automakers in Europe, the place corporations have stated they may start constructing automobiles by the top of this month. In America, automakers together with Fiat Chrysler Vehicles (FCHA.MI) and Toyota Motor Corp (7203.T) are hoping to restart manufacturing in early Might.

To make certain, GM has not set reopening begin dates elsewhere on the earth.

Brazil has extra coronavirus circumstances than any nation in Latin America and its right-wing President Jair Bolsonaro has been criticized for minimizing the severity of the illness.

GM stated all its Brazilian employees apart from one have agreed to the shutdown and for a plan to chop salaries by as much as 25%. The remaining union, primarily based in Sao Jose dos Campos in Sao Paulo state, will end voting on the proposal on Thursday evening.

If the disaster doesn’t enable employees to renew auto manufacturing inside 60 days, GM might prolong the shutdown to 90 days, based on a doc shared with employees and seen by Reuters.

Reporting by Marcelo Rochabrun; Enhancing by Christian Plumb

Our Requirements:The Thomson Reuters Belief Rules.

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