Environment Institute strike endangers car imports in Brazil

The strike led by Brazilian Environment Institute (Ibama) workers has put part of the industry at a standstill since January. According to the newspaper Folha de S. Paulo, after a little over two months, more than 30,000 vehicles are now stranded in port yards, awaiting environmental clearances issued by the agency.

In Brazil, imported cars can only officially enter the market after Ibama issues the necessary environmental licenses. By doing so, the agency ensures compliance with the country’s emission rules.

Vehicles that arrive at Brazilian shores by ship are getting stuck in ports. Those that cross land borders, such as those manufactured in Argentina and Uruguay, depend on Ibama’s approval to proceed ahead. The strike mainly affects car sales that are not produced in Brazil, such as BYD, Volvo, GWM, Kia, and Mercedes.

Auto market news agency Autoesporte got word that some car shops have dangerously low stocks. This is the case of a Peugeot reseller, which reported a shortage of the Argentine-produced 208 model. “Normally, I have around 100 cars in the inventory. Now, I have ten,” lamented the retailer.

Volkswagen is another brand that is struggling with supply in Brazil. The Taos is made in Argentina, and according to market sources, some stores may run out of the model. Toyota, which also produces the Hilux in the neighboring country, depends on clearance to assemble the pickup in Rio Grande do Sul. According to Zero Hora, the retention of pickups has an impact on local suppliers.

Autoesporte dug into the partial sales figures of imported cars from the National Federation of Vehicle Distributors (Fenabrave), which revealed that some models already show a downward trend in March sales compared to previous months.

Imported car sales in Brazil – March/2024

Source: Fenabrave

Three-month-long strike

Ibama employees demand new career programs, salary increases, and improved working conditions. Last week, Minister of Public Services Management and Innovation Esther Dweck presented a new proposal to the workers.

In addition to the automotive sector, the Ibama strike affects companies in the energy, oil, and gas sectors. The agency is also responsible for issuing environmental licenses for new construction projects.

Despite the strike, Ibama continues its operations in specific regions, such as indigenous lands and areas with endangered animals.

Source: Autoesporte

Click here to read the original news report: https://autoesporte.globo.com/setor-automotivo/industria-automotiva/noticia/2024/03/greve-do-ibama-trava-importacao-de-carros-e-afeta-estoque-de-lojas.ghtml

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