Volkswagen factory in Sao Carlos will provide engines for the Mexico

The Volkswagen plant in São Carlos, in São Paulo, won a global dispute and will supply engines for brand models produced in Mexico. Initially will be 250,000 thrusters to be delivered from the second half of this year until 2020.
To meet the new agreement, Volkswagen will make extra investment of R $50,000,000 in adaptations in the factory, but there will be no new signings. "Come on, at least, maintain the current 800 employees effective", says the Chairman of automaker in Brazil and South America, David Powels. Because of the economic crisis and the resulting slump in sales of vehicles, the plant operates with high idle.
According to the company, most of the countries where factories acts played the contract, whose value was not revealed. EA211 type Motors 1.4 TSI will equip the models Jetta, Golf and Golf Variant. Until now were made at own factory of the group in Mexico.
This equipment is already done in the brazilian subsidiary and the Golf team produced in São José dos Pinhais (PR). To meet the demand, the product will undergo some changes, as adaptation to local fuel. Sao Carlos factory also produces engines 1.0 and 1.6 for the entire range of vehicles of the brand in the country.
Second Powels, in addition to the investments in modernisation of the production process, "which helped to improve the competitiveness of the plant was the agreement made with the workers, which gave flexibility to labor issues and is valid for a period of five years".
Full salary. According to the President of the syndicate of the metalurgists of São Carlos, Eric Scott, the labour agreement closed in December provides for, among other things, the transfer of up to 5% of the INPC salaries this year and in 2018, voluntary dismissal programs, additional 20% night (before it was 25%) and adoption of lay-off (temporary suspension of contracts) and the Employment insurance program (PSE , formerly PPE).
Silva reports that from 2014, the factory operates with 40% idle 60% of your production capacity. About 100 employees are on lay-off and the PSE has been in force since the end of 2015, with reduction of journey and 20% salaries to 30%.
"With the new export contract, the expectation is that the PPE is over and the workers come back to receive the full salary," said the trade unionist.
The R $50,000,000 for adaptations in Sao Carlos factory will add to R $460,000,000 that are being invested in the unit from 2015.
Another automaker that announced recent investments in the production of engines is Toyota. The Group''s factory opened in mid-2015 in Porto Feliz (São Paulo), initially for the production of engines for the Etios compact, will be expanded to also produce the Corolla sedan engine.
The announcement in December provides for more investment in the unit $600,000,000 R, besides the R $580,000,000. For now the goal is to meet the domestic demand, but it''s not ruled out future exports of engines.
Exports. In automobiles, Volkswagen Brazil export leader. In the first quarter of this year, boarded 47,925 vehicles for countries in South America, Central America and the Caribbean. The number is double registered in the same period of last year.