US President Donald Trump’s Efforts to Revive Manufacturing in the USA
US President Donald Trump tries to turn the time back by using import tariffs as an instrument for the production of international companies to manufacture their products in the USA. Many companies produce abroad, usually due to lower labor costs in their respective host countries or to have a closer relationship with customers. This creates jobs in foreign markets that also increase local sales.
Volkswagen’s Presence in Brazil
Such a company is Volkswagen (VW). Two years ago, the German car manufacturer celebrated its 70th anniversary as a "Brazilian" car manufacturer. The company started in Brazil when a warehouse opened in Sao Paulo on March 23, 1953. The Anchieta factory, the first production facility of VW outside of Germany, was opened shortly afterwards. "Volkswagen do Brasil has completed 70 years of technological innovation and pioneering spirit," said VW Brazil boss Ciro Posobom at the 2023 celebration. "VW modernized its Brazilian factories, developed new technologies and is a brand that is much closer to people today."
Expansion Plans in Brazil
A year later, VW announced that it would expand its presence in Brazil by expanding its four locations in the South American country. At that time, automobile analysts reported that VW wanted to spend 7 million Brazilian reals in Brazil (EUR 1.1 billion or EUR 1.26 billion). Now this plan has been revised to 16 billion reals by 2028.
VW’s Investments in Brazil
VW’s investment in Brazil has largely paid off from the start. It not only invested in cars there, the company also tried to make money with cows, especially with beef. To make the latter easier, Volkswagen created a new agricultural business, which was removed in Sao Paulo, about 2,200 kilometers from VW Do Brasil’s headquarters in Sao Paulo.
Dark Secrets: VW and Brazil’s Military Dictatorship
The work on the farm was carried out far away from curious eyes, and the ultimate failure of the project did not make headlines. Historian Christopher Kopper, who studied the story of VW Do Brasil, says that VW was already addressed in the 1980s about its treatment of workers at Fazenda Volkswagen. In 2016, Volkswagen commissioned a report on VW Do Brasil’s activities during the Brazilian military dictatorship, which began when a military junta performed a coup in 1964 and maintained an iron grip on the country for the next 21 years.
Exploitation of Workers
VW commissioned the Swiss agricultural economist Friedrich-Georg Brugger to found the farm in 1974. Brugger counted VW employees and other contractual workers to carry out his ambitious agricultural experiment. It was only years later, in a report that was broadcast by German public television, it became clear how ruthless Brügger pursued his plans. Kopper said that VW workers were always looked after, but this did not apply to employees who were employed by subcontractors.
Collaboration with the Military Dictatorship
Kopper said that VW worked closely with the security apparatus of the dictatorship. "That was true for VW’s main factory in Sao Paulo and other facilities." He finally realized that the conditions in the Fazenda were only a detailed fragment from a much larger and much darker picture. For example, security at VW Do Brasil fabrics also worked closely with the Junta. VW employees tolerated arrests and abuse by the military police and sometimes even supported them.
Shadows from the Nazi Era
Such behavior would be a scandal for every company, but it is even worse with Volkswagen if you look at the start of the global car manufacturer in the days of Adolf Hitler’s dictatorship. Volkswagen was founded by Nazi organizations in Nazi Germany and systematically benefited from slave work and abused thousands of forced laborers. Had nothing learned in responsibility positions in Wolfsburg? Of course, there was immediately suspicion that the company had continued a decade ago in front of another dictator on another continent a decade ago.
VW Managers with Skeletons in Their Cupboards
Kopper said it was really difficult to delete such allegations aside. "I would partially agree with this in relation to management at VW do Brasil." He said the reasons for this had to do with the fact that many of VW managers were "army officers and members of Nazi photography" in the 1950s and 60s when they were younger. The social and legal re-evaluation of VW’s actions during the Brazilian military dictatorship is far from over. Numerous legal struggles for compensation and debt accessories are waiting for the global car manufacturer. Only when this process has been completed can Wolfsburg conclude this chapter in its company history.
