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Last Updated: Wednesday, 30 August 2006, 01:33 GMT 02:33 UK
VW strike in Brazil over sackings
Volkswagen workers in Brazil
Workers are opposed to Volkswagen's restructuring plan
Workers at Volkswagen's largest factory in Brazil have gone on strike after the carmaker said it was sacking 1,800 staff as part of restructuring reforms.

The industrial action will last "indefinitely" and is because of the redundancies, union workers said.

The German firm has been in talks over redundancies, wages and possibly closing the Sao Bernardo do Campo site.

Volkswagen has been hit by the steep appreciation of the Brazilian real against the US dollar.

This has made it harder for carmakers in Brazil to export viably to foreign markets.

Volkswagen said last week it needed to push through restructuring reforms. The job cuts it has announced are due to take effect on 21 November.

About 12,000 people are employed by VW at the plant, also known as Anchieta, which makes 960 vehicles a day including the Fox and the iconic VW Kombi. The German firm employs 21,000 people in Brazil overall.

The strike comes a day after a $232.1m (�122.3m) loan made to Volkswagen from Brazil's state bank was halted until the carmaker concludes talks with unions over planned reforms.

In July, Volkswagen said that between 4,000 and 6,000 workers would have to lose their jobs.




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