Mercedes lays off 500, gives vacations to 7 and shuts down the factory.

The automaker, part of the German Daimler group, announced layoffs at its plant in São Bernardo do Campo (SP), affecting part of a group of 750 employees whose work contracts had been suspended (layoff) for about a year; the plant employs a total of approximately 10,5 people; the company will later analyze whether to extend the layoff, which reflects the decline in sales.

May 20, 2015, 09:55 AMUpdated May 27, 2019, 10:48 AM

The automaker, part of the German Daimler group, announced layoffs at its plant in São Bernardo do Campo (SP), affecting part of a group of 750 employees whose work contracts had been suspended (layoff) for about a year; the plant employs a total of about 10,5 people; the company will later analyze whether to extend the recess, which is a reflection of the decline in sales (Photo: Roberta Namour).

SAO PAULO (Reuters) - The commercial vehicle manufacturer Mercedes Benz, part of the German Daimler group, announced on Tuesday the dismissal of approximately 500 employees from its plant in São Bernardo do Campo (SP) and collective leave for all production line employees for two weeks starting in early June.

According to information provided by the company to Reuters, the layoffs affect part of a group of 750 employees who had their employment contracts suspended (layoff) for about a year.

The collective vacation, involving the 7 production workers, will run from June 1st to 15th. The unit employs a total of approximately 10,5 people. The company will later analyze whether to extend the break, which reflects the decline in sales, Mercedes-Benz informed through its press office.

In addition to the plant in São Bernardo do Campo, in the metropolitan region of São Paulo, which produces trucks and bus chassis, Mercedes' commercial vehicle division has another plant in Brazil, in Juiz de Fora (MG), for which no cost-cutting measures have been announced for now.

The Brazilian automotive industry had its worst performance for the month of April this year since 2007.

New truck sales fell by about 40 percent between January and April compared to the same period last year, to 25.090 units, according to data from the vehicle manufacturers' association, Anfavea. Bus sales also fell by 26 percent, to 6.767 vehicles.

Earlier this month, Fiat granted 20 days of collective leave to 2 employees at its factory in Betim (MG), in a fourth production adjustment measure taken this year. Also at the beginning of this month, Volkswagen halted its factory in São Bernardo do Campo for 10 days, granting collective leave to 8 of the 13 metalworkers at the unit, according to the local union.

(By Aluisio Alves)