Volkswagen suspends car production in the country after market stagnation

2023-06-27 21:11:00

Volkswagen has decided to temporarily suspend car production in Brazil following evaluating a stagnant market in the country. As a result, the brand’s factories no longer feed the market even with the industry incentive program created by the federal government at the beginning of the month, creating discounts for popular vehicles, so to speak, of up to R$ 120 thousand.

The company said that the São José dos Pinhais unit, in Paraná, has had a shift suspended since June 5th. The layoff should last between two and five months. Another factory shift was suspended this Monday (26) and continues until Friday (30). The T-Cross model, sold for R$116,000 or more, is produced at this factory.

“All flexibility tools are provided for in the Collective Agreement signed between the union and Volkswagen employees”, said the brand in a note. The company was questioned by the G1 portal, but did not respond to questions regarding the relationship between the decision and the government program .

In the case of the factory in Taubaté, in the interior of São Paulo, two shifts were interrupted this week. The Polo Track and Novo Polo are some of the models made in this unit. The Anchieta facility, in São Bernardo do Campo, on the São Paulo grid, produces the Novo Virtus, Novo Polo, Nivus and Saveiro, and has instituted ten-day collective vacations, scheduled for its two production shifts, starting on the 10th. July.

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