Brazilian automotive production slowing

GM cuts back production but no plans to rein investment

Two leading vehicle manufacturers are adding to the production slowdown in the industry in Brazil, according to Automotive Business. General Motors (GM) has announced shutdowns in Sao Caetano do Sul and MAN has laid off 200 workers for five months. All production lines at the GM plant will stop, which will also impact operations in San Jose dos Campos, which supplies motors, parts, and stamped steel to the Sao Caetano do Sul plant, as well as building vehicles. GM’s plants in Gravesend and Joinville are reportedly not affected. The president of GM South America, Jaime Ardila, said that the economic issues in Argentina can be controlled, and that GM has no plans to pull back investment in production of a new model there, reports Automotive Business. Meanwhile, MAN is looking to reduce production by 20–22%, as the commercial truck market has declined by 11.2% this year.