Volkswagen plans to challenge a Brazilian court decision regarding conditions resembling slavery at an Amazon ranch.

FRANKURT, Aug 31 — Volkswagen's Brazilian branch plans to contest a ruling that deemed it responsible for keeping workers in conditions similar to slavery during the 1970s and 1980s, the company announced yesterday.

A labor court in the Brazilian state of Para ruled on Friday that many workers at a farm owned by Volkswagen do Brasil were held in debt bondage and monitored by armed guards while they worked.

The court stated that the Brazilian company must pay 165 million reais (26 million euros) in compensation, marking the largest fine ever imposed in Brazil's history.

Volkswagen do Brasil "will keep fighting for justice and legal certainty in higher courts," it stated.

With a legacy of 72 years, the company always maintains the values of human dignity and fully adheres to all relevant labor laws and regulations," it stated.

Volkswagen do Brasil must take responsibility and issue a formal apology, as ruled by the court.

In the mid-1970s, Volkswagen's Brazilian branch purchased land to establish a cattle ranch, motivated by the government that aimed to develop areas in and near the Amazon rainforest.

Jose Pereira, hired to clear rainforest from the land, informed German broadcaster ARD in 2022 that workers owed money to the contractors who hired them and that mistreatment was "If someone attempted to flee, the guards pursued and shot them," he stated.

"They assaulted those who managed to escape. In the streets, in the huts, everyone witnessed it."