Thursday 9 April 2015

Brazilian slump causes FIAT to halt production to ease very high stock levels.

Fiat Chrysler Automobiles will halt production at a plant in Brazil from today through Monday due to lower demand for cars and high stock levels. The nearly 16,000 workers at the plant in Betim, Minas Gerais, will be on paid leave.
A Fiat representative said it had previously announced paid leave from Friday through Sunday due to the Easter holiday, and had added days because of elevated supplies.

The representative declined to comment on stocks at the plant but union president Joao Alves de Almeida said the factory was manufacturing some 2,000 cars a day, down from peaks of 3,400 a few years ago, and had enough cars stocked for 40 sales days.
"This isn't good news -- it creates a climate of apprehension between the workers who are concerned about their future and maintaining their jobs," Almeida said.

On Monday another union said Volkswagen had furloughed 4,200 workers at its second-largest factory in Brazil for three weeks.
Many automakers are working to cut costs in Brazil, where sales and output are down more than 20 percent in the first two months. Jobs in the auto industry have fallen 8 percent in the 12 months through February.

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