Mexican Media Brands
Mercedes Seeks Voluntary Layoffs in Brazil as Truck Sales Slump
Daimler AG’s Mercedes-Benz unit hopes to trim 1,400 jobs at its truck plant in Sao Bernardo do Campo, Brazil, as sales continue to slump.
#labor
Share
Daimler AG’s Mercedes-Benz unit hopes to trim 1,400 jobs at its truck plant in Sao Bernardo do Campo, Brazil, as sales continue to slump. The target represents 16% of the company’s workforce in the country.
The voluntary program will offer Mercedes workers a one-time payment of 100,000 reais ($31,000) regardless of age or seniority, The Wall Street Journal reports. The offer is set to expire at the end of August.
Mercedes commercial vehicle sales in Brazil were down 23% for trucks and 28% for buses in January-July, according to the Journal. It notes that Brazil’s economy contracted by nearly 4% in 2015, and economists expect an additional 3% shrinkage this year. The slowdown has dampened business investment in big-ticket items such as commercial vehicles.
Overall vehicle sales in Brazil were down 25% through the first seven months of the year, according to automotive trade group ANFAVEA.
RELATED CONTENT
-
UPDATE: Unifor Ratifies GM Labor Pact by 86% Margin
Hourly workers at General Motors Co.’s CAMI assembly plant in Ingersoll, Ont., will vote today whether to accept an agreement to end a strike they began on Sept. 17.
-
Japanese Models Top “Most-American” List
The five most “American” models sold in the U.S. in terms of local content and labor all carry Japanese brands, says Cars.com.
-
Targets of U.S. Aluminum and Steel Tariffs Declare Counter-Measures
As expected, the European Union, Canada and Mexico have announced a broad array of counter-tariffs in response to U.S. import taxes of 10% on foreign aluminum and 25% on foreign steel that went into effect at midnight.