Volkswagen ’s Puebla, Mexico plant has been brought to a halt as workers went on strike late Tuesday. Workers at the Puebla plant went on strike shortly after wage negotiations broke down between Volkswagen and the plant’s union.
The Puebla plant produces the VW Jetta and New Beetle for Mexico, Canada and the United States. However, the U.S. market isn’t expected to immediately feel the impact of the plant strike as VW currently has a 108-day supply of cars – one of the largest in the U.S.
The Puebla plant typically produces 1,500 vehicles daily for the Mexican market and export, according to Automotive News.
Negotiations between VW and the plant union reportedly broke down last night after an agreement couldn’t be reached on a wage increase. VW offered a 1 percent wage increase plus a cash bonus of $425, but the union is seeking a 3 percent wage hike. Negotiations are expected to resume on Thursday.
