VW Idles Brazilian Plant for 2 Weeks

October 09, 2018 at 1:19 AM

Volkswagen AG says it is halting production at its factory in Taubate, Brazil, for 20 days because of slumping sales in Argentina.

The plant, located 150 miles west of Rio de Janeiro, employs 3,500 workers. The plant makes VW’s Up! city car, Gol subcompact and Voyage small sedan.

VW sales are growing in Brazil. But demand in Argentina, the Taubate factory’s largest export target, has plummeted because the country’s economic crisis.