Tire industry promises to review layoff plan – 03/17/2023 – Panel SA
With the end of the tax exemption offered by the Bolsonaro government to imported cargo tires, defined this Thursday (16), the industry promises to back off its layoff plans.
The sector had already been anticipating employee vacations to reduce production.
According to Klaus Curt Müller, chief executive of Anip (National Tire Industry Association), with the return of the tire import rate to the 16% charged previously, the tendency is to rebalance supply, but gradually.
“There was a stockpile of national tires because sales dropped, but there was also a stockpile of imported ones, because they imported a lot. The market will still suffer from dysfunctions, but the industry will certainly work to return to normal as quickly as possible and eliminate this problem workers”, says the president of Anip.
Müller says that industry representatives took their numbers to the government to show the drop in market share, the increase in idle capacity and inventory.
“It’s the same thing as zeroing import tax on cars or electronics. There will be an increase in imports, but over time, the production chains become unbalanced. We already had a problem with natural rubber and steel. The whole chain felt the reduction of purchase and many operations become unfeasible in this scenario”, says Müller.
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