Volkswagen reaches agreement with workers at Mexican plant to avoid strike

Volkswagen AG avoided a labor union strike by entering a deal with workers at its plant in Puebla, Mexico. The country’s auto industry, a major supplier of cars for the U.S. market, lists Volkswagen as one of its biggest producers. The Mexico plant builds the VW Beetle, the Jetta and its variants, as well as the New Beetle. In a statement, Volkswagen said that it agreed to implement a 6% wage increase to its workers who threatened to strike.

Since last year, the Volkswagen plant has hired over 2,500 workers, says Autonews. The automaker aims to achieve a new production record for 2011.

In the first seven months of the year, the plant had rolled out 295,061 vehicles, compared to 235,623 units for the same period last year, according to the Automotive News data center. The auto industry in Mexico has recovered from the 2009 global recession but in the near-term, the demand may be affected by the uncertainty of the economy in the U.S.[via - 4wheelsnews]

Photo : 2012 Vw Beetle