Employees at Volkswagen's Brazilian São Carlos engine plant re-started to work on Thursday afternoon after 10 days on strike.

On Wednesday, staff at the Taubaté car factory returned to work which now leaves only the São Bernardo do Campo car plant, the oldest and biggest VW factory in Brazil, still on strike.

The strike was called to force Volkswagen to increase the amount of profit it shares with staff.

The 600 workers at São Carlos accepted a Volkswagen offer after a meeting yesterday morning. This factory supplies engines to all VW vehicle assembly plants in Brazil and, following the re-start, the automaker expects to resume normal production of cars at Taubaté and São José dos Pinhais, the latter being the only factory where workers didn't strike.

VW said it has lost more than 11,000 engines to the strike.

However, 12,400 workers at São Bernardo do Campo remain idle - they were the first to strike on 29 September.

The 1959-inaugurated plant makes the Polo, Polo sedan (exported to Europe), Gol, Saveiro compact pick-up, Santana, Kombi and Fox Europe models and only the Gol and Fox Europe are made elsewhere in Brazil.

VW has said it want to resolve the strike at São Bernardo do Campo but is unable to make any more offers to the trade union, which has rejected all moves so far.

The strike has cost Volkswagen over 14,000 cars to date.

Rogério Louro