 Workers are opposed to Volkswagen's restructuring plan |
A $232.1m (�122.3m) loan to Volkswagen from Brazil's state bank is to be halted until the carmaker concludes talks with unions over planned reforms. The German giant is in talks over redundancies, wages and the possible closure of its Anchieta factory - its largest in Brazil - near Sao Paolo.
Volkswagen said last week it needed to push through restructuring reforms.
It has been hit by the steep appreciation of the Brazilian real against the US dollar.
This has made it harder for car makers in Brazil to viably export to foreign markets.
About 12,000 people are employed by VW at the plant and 21,000 in Brazil overall.
In July, Volkswagen said that between 4,000 and 6,000 workers would have to lose their jobs.
"We will see the impact of negotiations in the investment strategy," said state development bank head Demian Fioca.
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