It isn’t uncommon for auto manufactures to halt production when there is over capacity or a slow down in demand, however developing nations like Brazil are the bell weather to how successful a car manufacture is perceived within a developing nation.
Fiat’s bell is looking rather rusty these days and demand for their cars in Brazil looks overcast with uncertainty as Brazilians seem to be focused on the better things in life and it doesn’t include a Fiat automobile anytime soon.
The Fiat Chrysler group has decided to halt production at its manufacturing facility in the Pernambuco region of Brazil. The factory has a annual production capacity of 250k vehicles per year and the site covers nearly 12 million square meters.
Fiat isn’t an unknown quantity to the Brazil market, it was one of the first foreign automakers in nation to establish manufacturing activities outside the industrial belt of São Paulo.
The halt in production is to do with familiar issues within the auto industry, high levels of stock and a slow down in demand. Something had to give and that meant 16,000 Fiat workers being put on paid leave from Friday to Monday.
union president Joao Alves de Almeida said “This isn’t good news — it creates a climate of apprehension between the workers who are concerned about their future and maintaining their jobs,”
Brazil is experiencing a a marked decrease in new car sales, Fiat isn’t alone in having to halt production, Volkswagen recently announced it was halting production for three weeks to enable stock levels to be sold off before restarting manufacturing.