General Motors will buy its workers in Brazil, as its South American company continues to face demanding situations due to the COVID-19 pandemic.
According to a new Reuters report, the local Brazilian union said GM had begun offering repurchases to some of the staff when it planned to reduce the duration of its labor force in the country due to declining sales and market instability. The union has not yet voted on the proposed repurchase program, Reuters says GM must provide it to “all employees.”
In addition, the union said GM planned to increase the transitional license for two more months. The automaker put some Brazilian painters on a transitional license before this year, when the pandemic began, and plans to bring them back in September, but they may not repaint until November at the earliest.
Last year, GM CEO Mary Barra said the company’s South American business is in a delicate situation, saying the automaker “would not continue to deploy capital to lose money” in Brazil and elsewhere in the region.
At the time of writing, Brazil had 3.12 million cases shown coVID-19, as well as 103,000 deaths and 2.24 million cures. According to the knowledge received through Johns Hopkins University, almost some of all COVID-19-related deaths in Latin America and the Caribbean occurred in Brazil.
GM currently operates five production plants in Brazil, the largest being its Gravataí plant in the southern state of Rio Grande do Sul. The Gravataí facility builds the Chevrolet Onix hatchback and sedan, which is also the best-selling vehicle in the country. The Gravataí plant recently celebrated its 20th anniversary after first opening its doors on July 20th, 2000.
Brazil is the largest automotive production center in South America and, in addition to GM, serves as the basis for major automakers, adding Volkswagen, Ford and Fiat Chrysler.
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The situation in Brazil is truly frightening with COVID-19 running rampant and totally out of control, it may take years before the situation improves even if there is a vaccine.
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