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GM Suspends Work at Brazil Plant
General Motors Co. idled its manufacturing complex in Sao Jose dos Campos, Brazil, on Tuesday after workers at a car assembly plant there went on strike.
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General Motors Co. idled its manufacturing complex in Sao Jose dos Campos, Brazil, on Tuesday after workers at a car assembly plant there went on strike.
The company says it suspended work to ensure the safety of factory employees because managers have entered a "delicate" stage of talks with government officials and the union representing the factory's 7,200 employees. Labor officials say the move only increased workers' insecurity about their future.
GM expects to resume work on Wednesday at the complex, which makes the Chevrolet Corsa subcompact and Meriva small MPV, S10 pickup truck, transmissions and engines.
Workers walked out to protest the possible closure of the car factory, which could result in the loss of 1,500 jobs. They also conducted a 24-hour walkout last week. GM ended production of the Zafira MPV, one of four models made there, earlier this month. The company says the remaining models are out of date.
GM says it will decide plant's fate by the end of the month after reviewing the latest sales reports. Brazil's car market dipped 1% year over year to 1.72 million units in the first six months of 2012, according to trade group ANFAVEA. The country's auto output has shrunk 9% to 1.55 million units in the same period.
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