Volkswagen suspends car production in Brazil due to “market stagnation”

Sao Paulo-SP) – The vehicle manufacturer Volkswagen announced this Tuesday (27) the temporary suspension of car production at its factories in Brazil. The company’s justification is “market stagnation”.

The automaker’s decision comes after the government’s incentive program for the automotive industry, announced by the federal government, which came into effect on June 6, with discounts for cars of up to R$ 120,000.

One of the company’s largest factories located in São José dos Campos (SP), entered into a ten-day collective vacation process, scheduled for its two production shifts, starting on July 10th.

Companies such as Renault, Nissan, Honda, Fiat and Toyota entered the federal government program with the request of R$ 420 million in tax credits from the R$ 500 million available for discounts to the individual consumer in the purchase of a brand new vehicle.

According to a response sent by the company to the G1 website: “all flexibility tools are provided for in the Collective Agreement signed between the union and Volkswagen employees”.

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