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:


Login or Create new account to add a comment!


Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016
We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016