Brazil: Volkswagen reduces vehicle production in São Paulo and Paraná

Volkswagen will reduce from two to one shift at its plants in São José dos Pinhais, in Paraná, and Taubaté, in the countryside of São Paulo.

The German assembler will also temporarily suspend labor contracts for up to four months.

The measures will begin on June 1.

The company intends to adjust production to the sales volume, which is falling this year.

The information is from the unions representing the workers in the two states.

Since February, Volkswagen has already granted seven collective vacation periods in its four plants in the country.

In press releases, the automaker informed that the stoppages would be necessary for maintenance in the production lines and lack of components.

However, it does not cite the drop in sales, but the metalworkers’ unions claim that the reduction in vehicle sales impacted the automaker.

PRODUCTION IN PARANÁ

The Volkswagen plant in Paraná has approximately 2,000 employees.

The union forecasts that 700 workers will have their contracts suspended.

With the change, vehicle production will fall from 500 to 300 units per day.

Initially, the assembler intended to manufacture 100,000 vehicles this year, but with the measure, it will be 90 thousand units.

PLANT IN SÃO PAULO

In Taubaté, the temporary suspension of the labor contract will affect 800 workers.

The measure is expected to last between two and five months.

Between March and April, Volkswagen had already given collective vacation to 2,000 metalworkers in the Taubaté plant and the São Carlos engine factory, also in the state’s interior.

900 employees had to stay away from work for a month.

SECTOR IN CRISIS

Since the beginning of the year, at least 16 factories have announced stoppages due to a lack of components.

This is more than half of the 27 automakers associated with the National Association of Motor Vehicle Manufacturers (Anfavea).

Brazil has 57 factories in the sector, producing engines, vehicles, trucks, buses, and agricultural machinery.

This year, there were also three shift closures with no date for return.

The first quarter of the year ended with sales of brand-new vehicles below expectations, bringing concern to the sector in a scenario of high interest rates, lack of credit, and loss of income for Brazilians.

With information from Revista Oeste