Volkswagen has temporarily suspended car production in Brazil, despite the government’s recently implemented incentive program for the automotive industry.
The program, which offers car discounts up to R$120,000 (US$24,000), was published on June 6.
However, the company has not commented on the connection between the government program and its decision.
The São José dos Pinhais (PR) plant, where the T-Cross model is manufactured, has been on a temporary work suspension since June 5, with an expected duration of 2 to 5 months.
The other shift at the same facility began its work suspension on Monday and will remain inactive until Friday, operating on a time bank basis.
At the Taubaté (SP) plant, which produces the Polo Track and New Polo models, both production shifts have been interrupted this week on a time bank basis.
The Anchieta plant in São Bernardo do Campo (SP), where the New Virtus, New Polo, Nivus, and Saveiro are produced, has scheduled a collective vacation of ten days for its two production shifts starting on July 10.
Volkswagen states that all flexibility measures comply with the Collective Agreement signed between the company and its employees’ union.
Regarding the government’s incentive program, automakers have already utilized 84% of the available tax credits for discounts on vehicle purchases.
Out of the allocated R$500 million, manufacturers have requested R$420 million in tax credits. Volkswagen has received R$60 million in released credits.
The authorized credits have been distributed among manufacturers, including FCA Fiat Chrysler, Renault, Peugeot Citroën, Hyundai, General Motors, Nissan, Honda, and Toyota, with varying amounts allocated to each.