VW Workers in Brazil Protest Job Cuts

Workers at Volkswagen’s biggest factory in Brazil began a strike to protest the firing of 3,000 employees, halting 40% of the German company’s production in the country.

The Anchieta plant’s 13,500 workers walked off the job after rejecting a last-minute proposal by VW to fire half as many people. Europe’s largest car maker is trying to cut costs after sales slumped in Brazil and as it invests $840 million to start producing the new Polo car at the factory.

VW, which has been in Brazil more than 40 years, depends on the country for 8% of global unit sales. The strike stopped production lines that make the Gol subcompact, an economy model that accounts for most sales in the country, as well as the Santana sedan, Kombi van and Saveiro pick-up truck.