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Back in 2013, Daimler announced plans for building a new facility tasked with the manufacturing of passenger cars for the Brazilian market. It would be located in Iracemapolis, in the state of Sao Paulo.
Three years later the factory was finished and was churning out C-Class and GLA crossovers. Unfortunately, this year’s coronavirus pandemic has forced Daimler to make a tough decision regarding this facility.
The German brand will wind down car production to the point of shutting down the entire factory (annual capacity of 20,000 units), which according to Reuters will cost approximately 370 people their jobs.
Daimler has acknowledged that the pandemic has caused a drop in demand for premium models in Brazil, which in turn made keeping the factory open an unsustainable task. However, passenger cars aside, Mercedes will continue to do business in Brazil at its Sao Bernardo do Campo plant, which is even undergoing modernization.