Heavy Rains Batter Brazilian OEM Operations
BRAZIL/SOUTH AMERICA REPORT
Recent heavy rainfall in Rio Grande do Sul has led to production disruptions in many automotive OEM operations located in the region, including GM, AGCO, Marcopolo, John Deere, Randon, and auto parts manufacturers like Fras-le. Despite this, automakers and auto parts companies are gaining control over production operations. However, logistical challenges persist, raising concerns.
Both Anfavea, representing automakers, and Sindipeças, representing the components sector, express worry about the production flow from these companies in Rio Grande do Sul, which serve domestic and international demands, presenting an unpredictable aspect currently.
The initial expectation for vehicle production was to remain steady despite the rains, as Gravataí and the Serra Gaúcha region, where most automakers operate, remain largely unaffected. However, parts production in Porto Alegre faced important disruptions due to many manufacturers being located in flood-affected areas in the region and the transportation from production areas to OEMs was severely affected. Some OEMs—such as GM, Stellantis and Volkswagen–already announced temporary plant shutdowns.
