Volkwagen takes aside 122,900 cars and vans in Brazil

Volkwagen takes aside 122,900 cars and vans in Brazil
Volkwagen takes aside 122,900 cars and vans in Brazil

The Brazilian branch of the German automaker said Monday that the defective software was in the Gol and Fox sedans and the VW van, known in Brazil as Kombi.

Volkswagen's Brazilian unit is restructuring to reduce its exports and trim labor costs, with overseas sales hurt by a strengthening of Brazil's currency, the real.

The Fox model is being sold at a loss in Europe because of the strong real, a VW manager said in an advance copy of biweekly Automotive News Europe. The real has climbed 35 percent against the euro since January, making Brazilian goods more expensive.

Volkswagen operates five factories and employs 22,000 people in Brazil, the AP reports.

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