Volkswagen Mexico Halts Local Production of Jetta, Taos

Volkswagen Mexico will stop the Jetta and Taos assembly lines in its plant in Puebla for 18 days during December because of semiconductor scarcity, which has remained a constant challenge for automakers. The pause will last from Dec. 5 to Dec. 23, according to the Independent Union of Automotive Workers (SITIAVW). 

The union explained that this stop follows the lack of some components, forcing the plant “to implement production stoppages for segment 1 and its auxiliary areas,” according to El Economista. Both shifts from the Jetta assembly line will stop but workers will receive 73.57 percent of their salary during these days. The Taos assembly line will only halt one shift. 

Volkswagen Mexico has been one of the most affected automakers due to the supply chain challenges caused by semiconductor scarcity. In November 2022, the company sold 3,645 vehicles, a 53 percent decrease when compared to the 8,390 units from the previous year. The company expects that during this period, domestic sales of both Jetta and Taos will decrease, as about 2,500 units will not be assembled. 

The union also said a date had not been set for the signing of the Collective Bargaining Agreement (CCT). The organization was waiting for the compliance of the 9 percent salary increase, approved in September 2022, as reported by MBN. 

"We have not defined the date of the possible legitimization of our Collective Bargaining Agreement, but in due course we will be bringing all the information,” said José Juan Hernández, Union Leader, SITIAVW. The union must meet this obligation by May 1, 2023, or the contract will no longer be valid. 

The USMCA brought significant changes to Mexico’s automotive industry. Esteban Martínez Mejía, Head of the Liaison Unit for Labor Justice Reform, highlighted the transformation of the national legal framework as it has allowed for a complete makeover of the labor relations in Mexico. “The measures implemented within the USMCA, such as the new labor unionization model and the rapid response mechanism, are unique in the world and unprecedented. New trade agreements are beginning to implement these measures,” said Martínez during the International Automotive Industry Congress (CIIAM) 2022, as reported by MBN.