July 13, 2007 -- The Brazilian unit of German carmaker Volkswagen AG (VW), Volkswagen do Brasil, recruited 725 workers for the introduction of two-shift production at its plant in Sao Bernardo do Campo, southeastern Sao Paulo state, local media reported. The move targets to boost VW's production of the successful Gol model. With the new workers, Volkswagen do Brasil expects to boost Gol model daily output to 1,015 units from 890 units at present.

The company has laid off over 1,000 workers at the plant since September 2006, as a part of its cost-cutting programme. The carmaker planned to dismiss a total 1,300 workers at Sao Bernardo do Campo, but the plan for the cut of the remaining jobs was cancelled in May 2007. Volkswagen started operation in Brazil in 1956 and now operates five plants in the states of Sao Paulo, Rio de Janeiro and Parana. Brazil's National Association of Motor Vehicle Manufacturers (Anfavea) announced on July 5, 2007, that Brazilian vehicle sales ballooned by 25.7 pct year-on-year to 1.08 million units in the first half of 2007.

Source: Latin America News Digest
Source: Factiva