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

Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 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