After having paused manufacturing operations at the Brazilian complex since June 12th, GM is reducing production at the São José dos Campos plant in the South American country.
The automaker finally resumed production, albeit at a slower pace, at Brazil’s São José dos Campos plant on Monday, July 3rd, when a layoff agreement with the entity’s Metal Workers Union came into effect to reduce volume production at the factory due to marked fall in demand for the current Chevy S10 and TrailBlazer SUV – the only two vehicles being built at the facility.
This temporary suspension of contracts, which affects some 1,200 workers, was agreed last week with the labor force and will imply a notable reduction in production at the São José dos Campos plant – which will start operating from the usual two shifts to just one daily shift. The agreement allows the measure to be extended for up to ten months and seeks to guarantee the sustainability of operations by adjusting production to market demand.
“The partial layoff at the São José dos Campos plant, agreed with the local metallurgist union, was approved by the employees and will start from Monday, July 3rd,” a GM Brazil spokesperson said to local newspaper G1 Globo. “The measure will adjust production to current market demand, in order to guarantee the sustainability of the business,” the company added.
In addition to the reduction in the number of units of the third-generation midsize pickup and its SUV derivative that will leave the factory in Brazil starting this July, the suspension of contracts and the second production shift at the São José dos Campos plant It will also affect production at the attached powertrain plant that makes the Duramax 2.8L I4 XLD28 turbodiesel engine and transmissions for both models.
The current Chevy S10 and TrailBlazer SUV have been produced for more than a decade at the São José dos Campos plant in Brazil, which is the only GM factory in the world to build the models after the company ceased operations in Thailand. In 2021, the company confirmed a massive investment in São Jose dos Campos to manufacture the next-generation models, but these will end up materializing as an extensive refresh of the current-generation vehicles.