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German automaker Mercedes Benz will wind down production at its Iraccemapolis mini-factory in Sao Paulo, Brazil. 


According to media reports, demand for luxury vehicles in the region has declined because of the COVID-19 pandemic, leading to the facility’s shutdown. The plant has an annual capacity of 20,000 units and produces the brand’s C-Class sedan and GLA SUV models. 


Mercedes set up the plant in 2016. Apart from the Iraccemapolis plant, Mercedes Benz do Brasil also operates a truck manufacturing unit in the same state, which has an annual capacity of 75,000 units. 

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