Brazilian Bus Manufacturer Suspends Operations

By pdamon01 September 2016

Brazilian bus manufacturer Comil has released an official statement saying that it will suspend operations at its Rio Grande do Sul plant in Erechim, Brazil — essentially ending its production of urban buses, coaches, micro buses and specialty buses. The employees are under paid license while the company negotiates their termination.

“This decision is a result of the crisis that affects Brazil with a great impact in the market of buses and trucks,” the company said in its statement. “According to the National Buses Manufacturers Association (Fabus), Brazilian production dropped more than 60% in the last three years. The production, which has reached 32,000 units, this year will be of 13,000. We have not seen such a low production since 1994, more than 20 years ago.”

The company also mentioned the higher prices of materials — steel prices have risen 35% this year — restriction of credit lines and the value of the dollar which has affected the competitiveness of Brazilian products in foreign markets as among the other factors it weighed in its decision.

Since the intensification of the economic and political crises in the country which began in 2014, Comil said it has adopted several measures to adjust the market, such as concentrating its entire production in Erechim. Recently, Comil had launched two new bus models, the Campione Invictus and DD Invictus.

“Comil apologizes having to be part of several other companies which had to take this hard decision, but reinforces the commitment in doing all efforts that were possible to reduce the impact, keeping the respect and the seriousness that always had with the staff, clients, partners and suppliers,” the company said.

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