Published by Global Banking & Finance Review®
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Volkswagen's Brazil unit is fined $30 million for 1970s-80s slave labor. The company plans to appeal but must admit responsibility and apologize.
SAO PAULO (Reuters) -Volkswagen's Brazil unit has been ordered to pay 165 million reais ($30.44 million) in damages for subjecting workers on a farm to slavery-like conditions in the 1970s and 1980s, labor prosecutors said on Friday.
A labor court found that hundreds of workers at a Volkswagen-run ranch were subjected to degrading work conditions, forced into debt bondage and were held under armed surveillance.
Volkswagen said it would appeal the decision.
VW's cattle ranching and logging ventures in the Amazon during that time were backed by government incentives under Brazil's military dictatorship, part of a broader state plan to develop the region.
The ruling comes after talks to reach a settlement with VW's Brazil unit failed when the company "showed no interest" in negotiations, prosecutors had alleged.
Now, Volkswagen must publicly admit its responsibility in the case and issue a formal apology, prosecutors said. Volkswagen is also required to implement a "zero-tolerance" policy for slave-labor conditions.
In a statement, the automaker said it "consistently defends the principles of human dignity and strictly complies with all applicable labor laws and regulations."
($1 = 5.4212 reais)
(Reporting by Alberto Alegiri Jr.; Writing by Kylie Madry; Editing by Leslie Adler)
Volkswagen's Brazil unit has been ordered to pay 165 million reais, equivalent to approximately $30.44 million, in damages for subjecting workers to slavery-like conditions.
Workers at the Volkswagen-run ranch were subjected to degrading work conditions, forced into debt bondage, and held under armed surveillance.
Volkswagen stated that it would appeal the decision and emphasized its commitment to human dignity and compliance with labor laws.
Volkswagen must publicly admit its responsibility in the case, issue a formal apology, and implement a 'zero-tolerance' policy for slave labor conditions.
The ruling is tied to VW's cattle ranching and logging ventures in the Amazon during the 1970s and 1980s, which were supported by government incentives under Brazil's military dictatorship.
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