Brazil’s truck market will shrink at the least 30% this yr from 2019 as demand slumps together with financial exercise amid the federal government’s efforts to battle the unfold of the coronavirus, in response to Philipp Schiemer, president of Mercedes-Benz DMLRY 0.23% do Brasil.
Mercedes-Benz produces automobiles, vans and buses in Brazil, and earlier than the beginning of the well being disaster, was anticipating the truck and bus markets to develop this yr. However the shutdown of nonessential companies has slashed demand for automobiles and buses and hit demand for vans in lots of sectors, stated Mr. Schiemer, who heads the corporate’s vans and buses division.
“The truck market hasn’t stopped as a lot as passenger automobiles or buses,” Mr. Schiemer stated in an interview. “Some truck segments are at full pace, akin to agriculture, chemical, the meals sector, and with an excellent perspective, however in business, retail, non-public consumption” demand is struggling loads.”
The dimensions of the drop in demand will rely upon when exercise can begin to get better, Mr. Schiemer stated. If companies start to reopen in June or July, then the truck market would possibly decline solely 30% to 40% from 2019. But when the reopening is pushed again previous July, then demand may fall much more, he stated.
Mr. Schiemer declined to present forecasts for truck gross sales at Mercedes-Benz this yr, however stated he expects the same decline as within the total market. The corporate bought 1,931 vans in March, and gross sales fell to 1,180 in April, in response to the corporate. The bus market may shrink as a lot as 50%, Mr. Schiemer stated.
Mercedes-Benz shut down manufacturing on the truck and bus manufacturing unit within the city of São Bernardo do Campo, close to São Paulo, in March, and on Might 11 resumed operations there. Manufacturing on the auto plant, which is a part of a separate unit, is scheduled to renew solely in June.
The corporate has carried out many new insurance policies to guard staff and cease the unfold of the coronavirus, together with organising a clinic throughout the plant in São Bernardo, requiring the usage of masks and ceaselessly taking staff’ temperatures.
Staff who’ve a excessive temperature or really feel some other signs are examined, and if they’re discovered to be contaminated, their households and different contacts are additionally examined, all at firm expense, in response to Mr. Schiemer. The corporate has discovered about 20 staff who’re contaminated because the plant reopened, he added.
Mercedes-Benz has been donating house at its plant in São Bernardo do Campo, and the time of dozens of its staff, to efforts to spice up manufacturing of ventilators in Brazil. The corporate has despatched staff to a close-by enterprise that already produced the gear, which aids sufferers who’re having issue respiratory, to assist enhance output to 70 items a day.
The automobile maker has additionally ready a manufacturing line inside its plant to make ventilators which are simpler however that can be utilized to assist sufferers with simpler signs. The corporate is anticipating to obtain approval for these new machines as quickly as as we speak from Brazil’s well being authorities, and as soon as they get the OK, the corporate will be capable to make about 30 a day, Mr. Schiemer stated.
“We’re not incomes something with this, that isn’t our intention,” he stated. “We’re donating our house and our workforce, that’s our contribution” to assist Brazil throughout the health-care disaster.