Mercedes Brazil puts 7,000 workers on forced leave

SAO PAULO: Mercedes-Benz Brazil has put 7,000 of its workers on forced vacation to cope with the sudden drop in sales of trucks and buses, a spokeswoman for the company said Friday.

The leave, which runs from February 23 to March 4, affects more than half of the 12,000 workers the German company employs in its factory in Sao Bernardo do Campo, just outside Sao Paulo, she told AFP.

The forced vacation should be "sufficient" to deplete inventories without resorting to lay-offs, the spokeswoman said.

Sales of Mercedes-Benz buses and trucks in Brazil plummeted by more than a quarter in January 2009 compared to December 2008.

Most of the auto companies in Brazil have put workers on mandatory leave as they confront a massive slump in sales. The firms include Volkswagen, Ford, Fiat and Peugeot. General Motors Brazil has also sacked 800 employees.

The national automakers' association, Anfavea, is to release January production figures for the sector early next week.

The last two monthly data sets have been bleak, with companies and the government blaming a drying up of consumer credit for the drop-off in sales.