Volkswagen is laying off 900 workers at two Brazilian sites

Article by Christian A., on April 28, 2014

Volkswagen is laying off around 900 jobs at its Sao Bernardo do Campo site outside of Sao Paulo and its Sao Jose dos Pinhais plant in Parana as the carmaker faces slumping demand in Brazil. The layoffs will commence on May 5, according to Brazil's Metalworkers' Union.

Volkswagen's Brazilian unit said in a statement that they are using the flexibility tools set in the contracts between the company and unions to adjust to the markets actual demand.

In March, carmakers posted a 15-percent year-on-year drop in auto sales in Brazil to just 240,800 vehicles, according to Brazilian automakers association, Anfavea. Vehicle output also dropped 8 percent in the first three months of 2014 to 789,900 units.

Despite the layoffs, Volkswagen has not made any changes to its $10-billion investment plan in Brazil, which covers years until 2018. Another German carmaker, Mercedes-Benz, commenced earlier this month a voluntary layoff scheme at its Sao Bernardo do Campo site in Brazil as part of its bid to trim its workforce by 2,000 people.

Under standard Brazilian auto industry labor contracts, carmakers are able to lay off workers for up to five months. The laid off workers will be sent homes with their salaries paid in part by the employer and the balance from a Brazil's unemployment-insurance system.

Anfavea president Luiz Moran recently urged the government and unions to accept a layoff that lasts beyond five months. [source: Reuters]

Topics: vw, brazil, factory

If you liked the article, share on:

Comments

Recommended

We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries