VW Mexico, Union Resume Negotiations

After failing to reach an agreement on Thursday, the board of the Mexican division belonging to Volkswagen and union representatives will resume talks on Friday. This way, the management hopes to convince the strikers to restart production at the Mexican plant in the central state of Puebla which currently makes the Jetta and the New Beetle for the United States market.

As we told you a few days ago, the workers are demanding a wage increase of 3 percent, but the German automaker is willing to offer only 1 percent and small cash bonuses. Still, the two sides can't reach an agreement so this is fourth-day of the strike during which production has been entirely halted.

"We have already been flexible," union leader Victor Cervantes was quoted as saying by Reuters.

It all started a few days ago when, in spite of the economic recession that reduced output by 25 percent last month, workers demanded a 3 percent wage increase. After a series of talks, Volkswagen revealed it can only offer 1 percent and a bonus of 5,500 peso ($425). Workers did not agree so here they are, protesting against board's decision right in front of the plant.

The German brand is still claiming that the strike won't affect the US inventories. According to Reuters, the company had a 108-day supply of cars on August 1, with sales dropping 13.5 percent in July compared to the same month of the previous year.

According to figures provided by, Volkswagen produced a total of 449,000 cars in Mexico last year but the output will be lower in 2009 because of falling demand in the US.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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