Volkswagen is expected to resume car output at its Taubate plant, in the city of same name in the state of Sao Paulo, following a preliminary injunction by a local court, which ordered Keiper, a seats provider for the automaker, to resume supplies of the product to avoid a daily BRL 500,000 fine.
Volkswagen suspended auto production at its Taubate plant on Monday due to a lack of parts, and a local union said about 4,500 workers at Volkswagen’s Taubate plant didn’t go to work as a result of the halt in cars output.
Keiper said it can’t comply with the preliminary injunction, since most of its workers are on vacations. Keiper said it has debts with Volkswagen, which are due to contract adjustments that weren’t met by the automaker.
Keiper said it will appeal the court ruling.