Volkswagen’s Brazilian truck unit – recently sold to MAN in a deal expected to close this first quarter – is extending paid compulsory holidays for 3,500 employees, according to a local newspaper because of continued decline in demand for its vehicles.
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The Sao Paulo said workers sent on leave from 17 December to 12 January will take a further holiday from 23 February to 5 March.
Such production cuts are becoming widespread in Brazil, where a downturn in vehicle sales due to the global credit crunch did not begin to bite until late last year.
On Monday just-auto reported that PSA had announced another temporary halt in output from 26 Janaury to 24 February, on top of an earlier closure from 8 December to 5 January.
Last week GM axed 800 temporary positions for an indefinite period at a vehicle plant, prompting a protest strike from the union.
Fiat will impose another temporary vacation period next week.
VW recently dismissed 150 workers at its Taubaté plant, also in São Paulo state, but converted 650 temporary contracts to permanent jobs as a trade-off.
