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The Brazilian unit of German automaker Daimler said it is suspending production at one of its four plants for two weeks because of a steep decline in sales.
The suspension will affect 7,000 workers at the Sao Bernardo do Campo plant in Sao Paulo state, who will go on paid leave, Efe reported Mercedes-Benz do Brasil Ltd. as saying on Friday.
The decision responds to "the need to adjust production to fall in the market".
The auto industry in Brazil faces a sharp reduction in sales amid a severe economic slowdown, with analysts estimating that gross domestic product will shrink at least 1.5% this year.
A report from the national association of motor vehicle manufacturers said motor vehicles production in Brazil in July was 14.9% lower than the same month in 2014.
Sales have fallen 22.8% since July 2014, leading several companies to apply measures similar to those announced on Friday by Mercedes-Benz, while some auto-makers have resorted to mass layoffs.
