Puebla Auto Parts Sector Faces Layoffs
The auto parts sector has seen 1,400 layoffs as a result of production adjustments at Volkswagen’s plant in Puebla, Mexico, as well as workforce reductions following the cancellation of the third shift, according to Carlos Sosa Spínola, president of the National Chamber of the Manufacturing Industry (Canacintra).
He noted that auto parts manufacturers are affected when automotive plants undergo technical shutdowns or adjust production volumes, a situation that also impacts the metalworking and plastics industries.
Also reported that 70% of the 350 companies in the auto parts sector have been negatively affected in terms of production and employment, making it difficult to recover these jobs by the end of the year.
In Addition, the decline in production orders at the Volkswagen plant in Mexico will inevitably have repercussions for auto parts manufacturers, highlighting the challenging conditions the industry has faced this year.
He noted that there has been little positive outlook since early 2026, amid the global challenges facing the automotive industry, particularly Volkswagen, which has announced plant shutdowns and 50,000 job cuts over the coming years.
Along these lines, said the German automaker had not expected workforce reductions either, particularly as negotiations over the Collective Bargaining Agreement (CBA) remain underway.
Sosa Spínola expects production of the Golf model at Volkswagen’s Puebla plant in 2027 to help recover employment levels.
“The challenge is to continue focusing on the diversification of the industry, which remains one of the main drivers of the state’s economy,” he said.
