Tags: Daimler | Brazil | jobs | trucks

Daimler Cutting 1,500 Brazil Truckmaking Jobs as Demand Plunges

Monday, 24 Aug 2015 07:07 AM

Daimler AG is eliminating 1,500 jobs at its Brazilian truckmaking division as demand for commercial vehicles in the country shows no signs of recovery.

Workforce cuts became inevitable after industrywide truck sales in Brazil, South America’s largest economy, plunged 44 percent in the first half of 2015, compounding a decline last year, said Florian Martens, a spokesman at Stuttgart, Germany- based Daimler.

Brazil’s gross domestic product shrank in the four quarters through March, and the economy is forecast to keep declining until at least 2016. Daimler outlined the job cuts amid a deepening global selloff hurting emerging market assets. Brazil’s recession, high levels of inflation and rising financing costs are discouraging customers from buying vehicles, Martens said.

“For many months now there’s simply been a dramatic decline in truck orders,” he said. “Unfortunately, we don’t expect a quick recovery of the market.”

Daimler, the world’s biggest maker of commercial vehicles and the producer of Mercedes-Benz luxury autos, operates two plants in Brazil that build trucks and buses. The company’s workforce in the country totaled about 12,000 employees at the end of last year. Daimler is developing a factory to make passenger cars starting in 2016.

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Daimler AG is eliminating 1,500 jobs at its Brazilian truckmaking division as demand for commercial vehicles in the country shows no signs of recovery.
Daimler, Brazil, jobs, trucks
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2015-07-24
Monday, 24 Aug 2015 07:07 AM
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