Workers go on strike at Volkswagen’s Mexico plant

2009 Volkswagen Jetta

Workers at Volkswagen’s Mexico plant went on strike yesterday after wage negotiations between the German automaker and the plant broke down. The plant is responsible for making Jettas and New Beetles for the U.S. market.

Volkswagen builds 1,500 cars a day at the plant for both, the Mexican and international market. A spokesman said that Volkswagen did not expect a significant impact from the strike as contract negotiations were scheduled to resume soon.

Like the rest of Mexico’s auto industry, Volkswagen’s Mexico plant has been hit hard by the U.S. recession. Mexico’s auto output was down 25 percent in July from the same period an year earlier.

– By: Kap Shah

Source: Reuters