Almost 1,500 Volkswagen workers in Brazil have accepted buyout offers, in-line with initial targets.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Volkswagen do Brasil offered the buyouts at its Sao Bernardo do Campo plant as part of a first phase of a voluntary layoff plan agreed with unions in September. The plan calls for the eventual reduction of 3,600 jobs by the end of 2008.
The first buyout offer has attracted 1,496 workers, according to the Associated Press. A further 237 workers are expected to accept buyout packages by the end of January 2007.
The job cuts are part of a restructuring of the plant that employs around 12,000 people. Sao Bernardo do Campo, also known as Anchieta, is Volkswagen’s largest plant in Brazil. It is also the oldest car plant in the country, and produces a range of new and older models including the Gol, Saerio, Polo, Polo Calssic, Santana, Fox and Kombi, at a rate of 960 vehicles a day. There are also an engine plant and a foundry on the site.
Assembly volumes at the plant have been hit by the appreciation of the Brazilian real, which has resulted in a sharp reduction in exports.
