Autoeuropa admits new work stoppages and layoffs

  • ECO News
  • 27 August 2021

Due to the semiconductor crisis, the return to work after the holidays at Autoeuropa may no longer be on September 6.

Autoeuropa admits that the return to work after the holidays may no longer be on September 6, due to the worsening of the semiconductor crisis, which could compromise production. Expresso advances the information.

The company’s official source says it is “expected” that the situation will remain unstable for longer and, in this sense, does not exclude the possibility of new stoppages in production and layoffs. “Taking to the limit and draining the flexibility generated by the use of down-days [labour flexibility and job retention mechanism that deducts any work stoppages from the Christmas allowance], the company will have to consider the available and most appropriate measures to maintain employment and income given the significant drop in business volume,” points out an official source from Volkswagen, the parent company of the Palmela plant.

Because of the chip shortage, with an epicentre in Asia, Autoeuropa’s production has fallen by about 25,000 units since the beginning of 2021, with 73 production shifts cancelled.