General Motors plans to extend shutdown of Brazil production by 60 days

by SpeedLux
General Motors

General Motors prepares to keep its Brazilian factories closed for at least 60 more days because of the spread of the coronavirus, the company stated Thursday, as the final batch of unionized workers voted on the automaker’s proposal.

GM’s plants in Brazil have been closed since March 30 when the company put its workers on furlough, but kept their pay intact as it made workers use up vacation days.

But as the pandemic continues to kill more people globally and holiday allotments have dried up, the automaker has had to look for more drastic measures in South America’s top auto producer. Now its factories in Brazil, where for several years Chevrolet has been the country’s top selling brand, will remain closed at least until mid June.

The timeline puts Brazil behind the schedules set by automakers in Europe, where companies have stated they might start building vehicles by the end of this month. In The United States, automakers consisting of Fiat Chrysler Automobiles and Toyota Motor are hoping to resume production in early May.

To be exact, GM has not set reopening start dates anywhere else in the world.

Brazil has most coronavirus cases in Latin America. About 22,318 people in Brazil have been confirmed as being infected with the coronavirus. The virus has killed 1,230 people in the country.

GM said all its Brazilian employees except for one have agreed to the shutdown and for a plan to slash salaries by up to 25%.

If the crisis does not allow workers to restart auto production within 60 days, the automaker may extend the shutdown to 90 days, according to a document shared with workers.

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