Workers at Volkswagen’s Mexican plant go on strike

Article by Christian Andrei, on August 25, 2010

After wage negotiations between Volkswagen AG and the union of its Puebla, Mexico plant broke down, workers went on strike on Tuesday. Red and black strike banners were hung at the entrances to the factory while workers stood their ground, shouting slogans. Workers are asking for a 3% wage increase, according to union leader Victor Cervantes.

On the other hand, Volkswagen offered a 1% increase in wages beginning February 2010 and a 5,500-peso ($425) cash bonus. Stoppage of the plant's operations, which make Jettas and New Beetles for the US market, is believed not to have an immediate impact.

As of August 1, the VW brand recorded a 108-day supply of cars, more than double the US industry average. Sales of VW-badged vehicles fell just 13.5% this year through July in a market that has fallen 32.1%. Like the rest of Mexico's auto industry, VW's Mexican plant has been hit hard by the U.S. recession.

Mexico's auto output fell 25% in July compared to the previous year. Mexico's plummeting auto exports have been a leading factor in the country's recession, with the economy this year expected to contract more than any time since 1932.

Volkswagen builds 1,500 cars a day at the plant for both the Mexican market and for export. A VW spokesman in Germany said the company did not expect a significant impact from the strike as contract negotiations were scheduled to resume Thursday.

Topics: vw, mexico, strike

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries