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The suspension of production announced by the German multinational will occur at the Sao Jose dos Pinhais, Taubaté and Sao Bernardo do Campo plants. Industry unions attribute the decision to the high level of interest rates from the Central Bank.
In the factories that Volkswagen has in Sao Jose dos Pinhais and Tabaute, some shifts were interrupted for a while. Meanwhile, at the Sao Bernardo do Campo factory, the firm called for ten-day collective vacations for its two production shifts starting on July 10.
This is part of a temporary suspension of its production that the company attributes to “market stagnation” and that the São Paulo Metalworkers Union links to the lack of credit and high interest rates in the country.
The German company indicated that all the flexibility tools are provided for in a collective agreement signed by the union and Volkswagen employees.
They will extend benefits to assemblers
This decision by Volkswagen comes a few weeks after the launch of the plan known as “People’s Car”, with which the government of President Luiz Inácio Lula da Silva offers tax credits to assembly companies in exchange for discounts of up to 11% on the price of final sale.
The resources of this program, launched at the beginning of June, quickly ran out, after granting 1.5 billion reais (310.09 million dollars) in tax credits to car manufacturers.
However, Finance Minister Fernando Haddad said an additional 300 million reais will be allocated to the program. To pay for the extension, the government will increase a federal tax on diesel by 0.03 reais per liter starting in October, he said.
With EFE and Reuters
