Mercedes-Benz, the largest automaker in Latin America, temporarily laid off more than 10 percent of its employees at its Brazilian plant.
The world class automaker announced that the 1,500 employees of the company will be given five months of professional training and be provided with wages, which will be financed by the state mandated workers support fund.
According to Financial Times, Mercedes-Benz said the decision was made to "reduce the impact on employess of an excess of labour that was the consequence of a fall in the market for trucks and buses."
According to auto experts, the rise in the loans in Brazil is a major cause of concern for Mercedes-Benz. It's not only bringing down the improving economy of the nation, but also discouraging world class automakers to explore the huge potential of expanding auto sector.
The National Automaker's Association reports, the sales of vehicles in Brazil have seen a decline of 14 percent in April compared to March. Each month has turned out to be a nightmare for global automakers who have a presence in Brazil.
The move by Mercedes-Benz comes in the wake of the support within the government of Brazil over the concern of the auto industry in the nation and its growth.
The goverment introduced a $10bn stimulus package last week in hopes of propping up the auto industry, it will take time to see if the measures worked.
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