BRASILIA: The organization representing Brazil’s automakers says its members are still looking to shed jobs even after eliminating thousands of positions through layoffs and early retirements.
“We adjusted our workforce, basically, through incentives to voluntary retirement but, even with those cuts we still have excess personnel,” Luis Moan, president of the National Association of Motor Vehicle Manufacturers, or Anfavea, told a press conference.
Anfavea estimates that Brazilian auto manufacturers have reduced their workforce by 9.5 percent this year, from 144,200 employees in December to 139,600 in April.
The Brazilian auto sector employed 154,200 people in April 2014.
Besides layoffs and buyouts, auto manufacturers are trimming production by furloughing workers, usually with pay.
General Motors Brazil announced Tuesday it was granting paid vacation to 467 workers at its Sao Caetano do Sul plant to reduce production in line with falling demand.
On Monday, Volkswagen extended vacations to 8,000 of the 13,000 employees at its largest plant in Brazil, located near Sao Paulo.
Anfavea said production of motor vehicles in Brazil dropped in April to 217,089 units, down 14.5 percent from the previous month and 21.7 percent from April 2014.
Sales fell 6.6 percent last month compared with March and by 25.2 percent compared with April 2014. Year-to-date sales total 893,600 units, off 19.2 percent from the same period last year.
