THE VW’s MODULAR SYSTEM, REGIONAL DEVELOPMENT AND WORKERS’ ORGANISATION IN RESENDE, BRAZIL

This paper draws upon on-going research into the changes taking place in the Brazilian vehicle assembly industry with particular reference to the state of Rio de Janeiro, Brazil. It focuses upon a case study of Volkswagen’s bus and truck plant and its workers at Resende. The plant opened in 1996 on a green-field site and was presented as a major development in vehicle assembly. The unique feature of the plant’s production system rests on the relationship between the assembler (VW) and its component suppliers. At Resende these were involved in a joint enterprise to establish a «modular system» of production. In this system, the component suppliers finance a part of the factory and organise the assembly of their components on site. As such few of the production workers are employed by the assembler whose main role in the process is to co-ordinate production and market the vehicle.