Volkswagen has suspended production in Sao Bernardo do Campo, Sao Paulo state, and put 8,000 workers on vacation, local news portal G1 said Monday.
Production at the Sao Bernardo do Campo plant is suspended until May 14, said G1. The measure is aimed to adjust production in line with weak market demand, and has won the understanding of the local labor union.
The Sao Bernardo do Campo plant was the first Volkswagen production facility in Brazil and has 13,000 workers.
In April, Volkswagen put 4,200 workers in its factory in Taubate, Sao Paulo state, on a 20-day vacation. The company tried to fire 800 employees in January, but gave up after workers went on strike.
Volkswagen is not the only carmaker in Brazil that faces trouble -- Mercedes-Benz, Ford and General Motors started voluntary redundancy programs this year, G1 said.
Vehicle sales fell 17 percent in the first quarter of 2015 in Brazil, according to statistics.