On May 16, 2012, the National Truth Commission (CNV)

was established in Brazil to investigate human rights abuses committed during the military dictatorship (1964-1985). The Truth Commission’s Final Report, published in December 2014, included findings that implicated several major companies, including Volkswagen’s Brazilian subsidiary, Volkswagen do Brasil Indústria de Veículos Automotores LTDA, in collaborating with the military dictatorship. This included monitoring employees, sharing information with security agencies, and even arresting and torturing workers suspected of being political opponents.

Following the CNV Report, three civil inquiries into Volkswagen’s role in the abuses committed during the dictatorship were opened by the Federal Public Prosecutor’s Office (MPF), the Public Prosecutor’s Office of the State of São Paulo (MP/SP), and the Public Prosecutor’s Office of Labor (MPT). Five years later, a joint report of these investigations was published in October 2020.

On September 23, 2020, a Conduct Adjustment Agreement (TAC) (a mechanism for consensual dispute resolution provided for in the Brazilian Code of Civil Procedure) was signed between the MPF, MP/SP, MPT and Volkswagen do Brasil Indústria de Veículos Automotores LTDA.

As part of the agreement between the parties, Volkswagen agreed to pay a total of 36 million reais (approximately 6.48 million US dollars). According to the TAC, Volkswagen do Brasil will pay the amount of R$4.5 million to the Diffuse Rights Defense Fund – FDDD, and another R$4.5 million to the Special Fund for Reparation Expenses for Diffuse Interests. In addition, it will allocate R$10.5 million to entities that develop projects to promote memory and truth about human rights violations in Brazil during the Military Dictatorship from 1964 to 1985.

Additionally, and although it is not expressly stated in the TAC (but rather in the information contained in the Joint Public Note – NPC issued by the signatory institutions of the TAC), Volkswagen do Brasil also agreed to make a “donation of R$16.8 million to the Volkswagen Workers’ Association – Henrich Plagge Association, which will ultimately be allocated to former Volkswagen do Brasil workers, or their successors, who suffered human rights violations during the dictatorship”.

Finally, the TAC stipulates that Volkswagen do Brasil will make a public statement about the facts investigated in the civil inquiries and subject to the TAC, to be published at least once in a major newspaper with circulation in the State of São Paulo.