Volkswagen Cutbacks Affect Seven Suppliers in Puebla

The Volkswagen plant in Puebla’s decision to cut third shifts in the Jetta and Tiguan production lines led to the layoff of 611 workers and also resulted in the loss of 650 jobs at seven supplier companies.

The president of the local National Chamber of the Manufacturing Industry (Canacintra), Carlos Sosa Spinola, expressed regret over the events that wreaked havoc on the auto parts sector, but he emphasized that it is inevitable.

He mentioned that layoffs at supplier companies were something they did not want, but they are part of the adjustments Volkswagen Mexico made in order to avoid disrupting production plans, just as changes were made at other plants worldwide following the announcement of 50,000 job cuts.

He spoke about discussions with executives from suppliers affiliated with Canacintra to explore restructuring opportunities at other companies, with the aim of taking advantage of the skilled workforce resulting from ongoing training.

It has been pointed out that the layoffs at auto parts suppliers were expected, as these companies are involved in the production of the Jetta and Tiguan through the supply of components.

Even so, the possibility that workers in the sector had migrated to other plants outside Puebla was ruled out, due to the need for permanent, experienced staff. Similarly, the reasons were cited as to why layoffs would lead workers to move to other states—when wages become competitive or for professional growth—justifying the move.

Sosa Spinola mentioned plans for new investments in the automotive industry, which will create new job opportunities, given that Volkswagen’s adjustments have an impact on Puebla’s economy.

However, he noted that by 2027, investments will arrive—primarily in the auto parts sector—as part of the growth plans of some companies that, in turn, are suppliers to other automakers in the country.