By Rogerio Jelmayer
SÃO PAULO--The Brazilian unit of General Motors Co. said
Wednesday it has temporarily stopped production at one of its
plants and idled 9,000 workers, after it failed to reach an
agreement on fees with two local transport companies.
GM said the suspension at its plant in Gravatai in Rio Grande do
Sul state has halted the production of 1,944 vehicles since the
dispute started Tuesday. The Gravatai plant, one of three the auto
maker has in Brazil, produces the Onix, Prisma and Celta
models.
Tegma and Transzero, the companies that transport vehicles
produced at Gravatai, have been negotiating with GM over
freight-fare increases. A GM spokesman said production will remain
idled until a deal is reached.
A Tegma spokesman said GM's decision was a surprise because it
was still providing services for the auto maker. Tegma had to stop
some activities at Gravatai because of a truckers' strike affecting
areas of Rio Grande do Sul, the spokesman said.
Transzero had no immediate comment, though a spokeswoman said
the company will respond later Wednesday.
The problems with some of its transport companies represents
another bump in the road for GM in Brazil. The company, along with
its rivals operating here, have seen steep drops in sales,
production and exports due to the country's weak economy and the
low level of consumer and business confidence.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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