ZF has decided to put all of its 5,000 workers in Brazil on collective holidays, starting from 1 April until 12 April to prevent spread of the coronavirus disease 2019 (COVID-19) pandemic in the country, M-Brain reported. The German supplier has been gradually reducing some activities in Brazil since the beginning of the last week (23 March).
Mahle Metal Leve, a subsidiary of another Germany-based supplier Mahle, has also announced plans to implement both collective and individual holidays at its all sites in Brazil. The company expects holidays at its sites in Brazil to continue through to the week of 13 April 2020. Apart from Brazil, Mahle Metal Leve has also suspended operations in Argentina, in line with local government orders.
Significance: Brazil has been the worst affected by the COVID-19 pandemic in South America. According to the latest data from Worldometer, as 1 April, 5,812 people were infected with the COVID-19 virus while 202 people have died. Automakers and suppliers are scaling down production activities in Brazil to prevent further spread of the pandemic. Volkswagen, General Motors, Ford, Mercedes-Benz, Toyota, Renault, and Hyundai have announced plans to suspend production and give collective vacations to their workers.
ZF has operations, including plants and offices, at seven locations in Brazil including in Araraquara, Engenheiro Coelho, Iracemápolis, Itu, Limeira, Sorocaba, and São Bernardo do Campo. Mahle Metal Leve produces pistons, bearings, connecting rods, valve train systems and air and liquid filtrations systems. In Brazil, the company has operations in Itajubá, Jundiaí, Limeira, Mogi Guaçu, and São Bernardo do Campo. In Argentina, Mahle operates in Rafaela and Garin.
