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Automakers Warn of Risk of Mass Layoffs in Brazil
Executives from Toyota, Volkswagen, General Motors, and Stellantis sent a letter to President Luiz Inácio Lula da Silva, expressing serious concern about a possible change in Brazilian automotive industrial policy.
What is the Concern?
The automakers' alert is due to the government's intention to encourage the assembly of vehicles in Brazil with parts and components manufactured entirely outside the country. This proposal, coordinated by the Minister of the Civil House, Rui Costa, could, according to the companies, lead to mass layoffs in the national automotive sector, as it would reduce the need for local production of components and parts.