Volkswagen and General motors have halted production at their auto plants in the ABC area in the state of Sao Paulo, according to media reports this Tuesday.
According to reports, both automakers idled auto production this week as a result of declining auto sales, which reduced 17 percent in the first quarter of the year.
On Monday, Volkswagen stopped car production at its Sao Bernardo do Campo plant and gave collective vacations to about 8,000 workers, according to information from a local metals union. The measure is expected to last ten days and was taken in order to reduce inventories and balance output, reports said.
In the city of Taubate, in the Sao Paulo state’s ABC region, another worker’s union said GM announced it will dismiss 467 employees, who will enter in a paid license for a indeterminate period of time. GM already has 800 employees who are on furlough and are expected to return to work on June 9.