GM to furlough workers in Brazil plant for 20 days, suspending production

General Motors Co said on Friday it would furlough all workers at one of its Brazil plants for 20 days in March for maintenance and updating of factory lines, leading to a suspension in production.

The plant, in Gravatai in the state of Rio Grande do Sul, produces the Chevrolet Onix compact car, which has been Brazil’s best selling car for several years in a row.

Edson Rosso, a union representative in Gravatai, said GM will furlough some workers for longer than 20 days.

He said that while GM will restart production on March 20, some workers will face up to five months in furloughs as a way to slow down production in light of a parts shortage that has disrupted auto output around the world.

GM did not directly address the additional furloughs but said its supply chain in South America had been disrupted during the pandemic.

“This has the potential to affect our production schedule in a temporary and partial way,” GM said.