• Categories
  • Archives

Volkswagen Brazil to Close Main Plant If No Agreement Is Reached

Volkswagen has warned it will close down its main factory in Brazil if an agreement is not reached with the unions on a restructuring plan which contemplates leaving 6.000 workers redundant.

The German manufacturer said that if the restructuring plan is not implemented the Anchieta plant in São Bernardo do Campo is condemned.

"Without an agreement Anchieta will not have the necessary conditions to compete for new investments, which would make it unviable in short term operations", reads a document from the company.

The restructuring plan announced last May includes the elimination of 5.773 jobs by 2008 out of a payroll of almost 22.000 in five plants Volkswagen has in Brazil.

The company warned the unions that if no agreement is reached, the decision will become effective next November 21 when the current job stabilization understanding expires.

Anchieta in the company’s main plant in Brazil dating back to 1959 and manufactures automobiles and light trucks.

The elimination of jobs is "inevitable" because of the strong appreciation of the Brazilian currency, real and an overall increase in costs.

Unions are scheduled this week to take a vote to decide future actions which have lately included stoppages and other protests.

Volkswagen also has two other manufacturing plants in Taubaté and São Carlos in São Paulo state, plus another two, one in Rio de Janeiro and another in Paraná.


  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

TAM, Brazil’s Flag Carrier Airline, Joins Star Alliance

Brazilian flag carrier airline TAM announced its entry into the Star Alliance, the largest ...

35 Indians Prosecuted in Brazil for Invading and Destroying Properties

Thirty-five leaders of the Xukuru people are being prosecuted for having reacted to the ...

US Counts on Paraguay to Tame Brazil and Argentina

Two soccer teams played for a spot in the semifinal of the Copa Libertadores ...

Brazil Denounces U.S. Military Presence in Paraguay

Brazilian Foreign Affairs Minister Celso Amorim expressed concern over the possibility Paraguay and United ...

Brazil and Vatican Clash on Condom and Singer Daniela Mercury

The Vatican recently announced it would not permit Brazilian pop singer, Daniela Mercury, to ...

We Are in This Together, Says Brazil About Preservation of Biodiversity

Brazil is home to between 15% and 20% of all living species, according to ...

Brazil’s Supermarket Sales Fall 10%. Worst Results Since November 2003.

Brazilian supermarket sales were down 10.1% in March in comparison with March, 2005, according ...

Collor de Mello four years after the fall

Four years ago this month the Brazilian congress made a decision that would send ...

Brazil to Get New Naval Industry Hub

The city of Rio Grande, in the southernmost Brazilian state of Rio Grande do ...