Volkswagen threatens 3,000 jobs losses

Car maker Volkswagen, faced with slumping sales and a cooling economy, has threatened to axe 3,000 jobs at its biggest Brazilian plant if unions reject a plan to cut workers’ pay and hours by 20%.

The German firm said the layoffs would affect the 16,000 employees at its plant in the Sao Paulo suburb of Sao Bernardo do Campo.

Brazil’s economy has been hurt by a weakening currency, high interest rates, a domestic energy crunch and the spillover from concern over neighbouring Argentina. As car sales have dropped, the ‘‘Big Four’’ car makers - Volkswagen, GM, Ford and Fiat - have all scaled back production.