Brazil's entire automotive industry faces a labor strike this week, with auto makers from Volkswagen AG (VLKAY) to General Motors Co. a target starting Thursday, the Metalworkers Union, CNM, said Wednesday.

Only CNM metal workers in Sao Paulo plan to strike. Weather permitting, the strike will last for the remainder of the week,

On Wednesday, workers walked out of auto parts makers Gestamp, Aethra S.p.A., Goodyear Tire & Rubber Co., Ford Motor Co. (F) and Volkswagen. On Thursday, assembly line workers that are part of CNM are scheduled to stop work during the afternoon shift only at all of the auto makers in Sao Paulo.

CNM is trying to negotiate a pay raise above inflation. Last week, the union rejected an offer from auto makers and auto parts companies to keep wages in line with inflation of roughly 4.7%.

If the strike persists beyond next week, auto makers would be forced to reduce production. CNM said the intention was not to completely stop production on the assembly line.

-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@dowjones.com