Mercedes-Benz Puts 5,600 Workers on Vacation in Brazil Due to Chips Shortage

Employees work on the new assembly line to build trucks at Mercedes Benz's trucks and buses manufacturing plant in Sao Bernardo do Campo, Brazil, on March 27, 2018. Paulo Whitaker/Reuters

SAO PAULO—Mercedes-Benz Group will put more than five thousand workers on collective vacation in two plants in Brazil due to the shortage of semiconductor chips, the company said on Monday.

The production stoppage will happen from April 18 to May 3 and includes 5,000 employees in the Sao Bernardo do Campo plant and 600 in the Juiz de Fora factory, located in the Brazilian states of Sao Paulo and Minas Gerais, respectively.