Tire industry threatens with layoffs and calls for Lula – 09/03/2023 – Panel SA

Tire manufacturers have scheduled vacations for March and April and are starting to talk about the possibility of a round of layoffs if the Lula government does not reverse Bolsonaro’s measure that zeroed the import tax on the product in 2021 amid threats of a truck driver strike.

With market loss for imported cargo tires, the sector plans to expand measures to cut production and personnel. There is still, however, an expectation that the next meeting of Camex (Chamber of Foreign Trade) will resolve the issue next week, according to Klaus Curt Müller, Executive President of Anip (National Association of Tire Industry).

He claims that the new government has shown signs of sensitivity to the issue.

“Our vision today is that this government is much more industrializing, sensitive to income and employment. We want to change this horizon quickly because we don’t want to reduce production or disinvest in Brazil. Our expectation is positive and we hope we don’t need to follow this route, which is too bad for all of us,” says Müller.

Márcio Ferreira, president of Sintrabor (rubber union) says that the cuts have been held back because the workforce is difficult to train, but that there is fear of dismissal among workers.

“Our hope is that, with the meeting on the 16th at Camex, the import tax rate of 16% will be charged again, because more imported tires are coming in than the national ones in Brazil. Companies are already scheduling individual vacations and conferences. They amended Carnival week to reduce production at tire companies”, says Ferreira.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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