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Volkswagen Suspends Planned Layoff in Taubaté Due to Possible Return of Affordable Car

Written by Bruno Teles
Published on 12/05/2023 at 15:24
Volkswagen suspende layoff
Foto: Volkswagen em Taubaté
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Volkswagen, One of the World’s Largest Automobile Manufacturers, Decided to Suspend the Layoff at the Factory Located in Taubaté in the Vale do Paraíba, Which Was Scheduled to Begin in June.

The layoff would be a period in which some employees would have their work contracts temporarily suspended and would receive their salaries while attending professional training courses. The suspension of the layoff occurs after the company stated that the reason would be the adjustment of production to meet a specific market demand.

In early May, Volkswagen announced that there would be a layoff scheduled for June, suspending 800 workers for a period that could range from two to five months, eliminating a shift on the Polo Track production line.

This Shutdown Would Endanger Polo Track Sales Volume in the Region, but with the Layoff Suspension, This Problem Was Temporarily Resolved.

However, the suspension of the second shift will move from June 1 to July 1, due to the policy that, according to the Metalworkers’ Union of Taubaté and Region, was signaled by the federal government regarding a new program for the automotive sector. This new automotive program, which is expected to be under analysis at the Palácio do Planalto, would also address the return of the popular car in a new format.

The labor movement and Anfavea have been discussing the issue of the popular car with the government. And due to the progress of these discussions, which involve taxation and other matters to boost the sector, Volkswagen is postponing the start of the layoff to July 1. Thus, the company hopes that something will come out of Brasília next month, benefiting the national market.

For now, Volkswagen has not provided more details about this change of plans and the possible return of the popular car in a new format, but this is a decision that could be beneficial for the national market, given that President Lula has already mentioned that a price of R$ 90,000 on a car “is not popular.” It remains to be seen what the outcomes of these discussions between the government and the automotive industry will be.

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Bruno Teles

I cover technology, innovation, oil and gas, and provide daily updates on opportunities in the Brazilian market. I have published over 7,000 articles on the websites CPG, Naval Porto Estaleiro, Mineração Brasil, and Obras Construção Civil. For topic suggestions, please contact me at brunotelesredator@gmail.com.

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