Weak demand and a struggling economy has led to slowed production at General Motors’ Sao Jose dos Campos facility Brazil, forcing the automaker to consider putting nearly a fifth of its workers at the factory on paid leave, Reuters reports.
Car, truck and bus production in Brazil will taper off by 10 percent this year, its most dramatic decline in 16 years, as sales in the region slow by 5 percent. Reducing the amount of workers it employs is one way GM is attempting to protect its investment in the country as the South American automotive market continues to weaken.
The automaker cut 1,058 jobs from the plant in January, and is now considering laying off another said 1,000 of the 5,200 workers at the plant. GM and employees are expected to discuss a proposal on the matter on August 1, a union rep told Reuters.