About 2,200 workers of automaker General Motors (GM) have been furloughed at the company’s Sao Jose dos Campos plant in Brazil.
The furlough was applied to the company’s employees producing the S10 and Trailblazer models, as well as to those involved with diesel engines. A local union said the furlough period will last through the Carnival holiday (ending March 1).
The decision to furlough workers was made six months after GM hired 500 workers to reinforce the production of pickup models. However, according to a local union, the company decided to furlough workers after GM lost a contract with Mexico to export 15,000 cars from the plant.
The contract breach was a result of Trump’s proposed measures against Mexico, according to a media report. Exports to Mexico account for about 27 percent of GM’s sales at its Sao Jose dos Campos plant.