This article originally appeared in the September 18, 2025 edition of Reto Diario. Although this is a few weeks old, We are republishing this in light of recent and ongoing discussions about labour relations at the Volkswagen plant and its future.
The Volkswagen plant in Puebla could face a mass layoff of 1,000 workers by the end of October, confirmed Víctor Gabriel Chedraui, head of the Secretariat of Economic Development and Labor (SEDETRA). The decision will depend on market conditions and ongoing negotiations with the Independent Union of Volkswagen Automotive Industry Workers of Mexico (SITIAVW), headed by Hugo Tlalpan.
Víctor Gabriel Chedraui, Secretariat of Economic Development and Labor (SEDETRA)
Since September, the union, the company, and authorities have held meetings to find alternatives to avoid workforce reductions. However, Chedraui acknowledged that “the issue is not easy,” as internal and external factors—including pressure from the U.S. market and tariffs—generate uncertainty.
The impact of a potential cutback would not be limited to the automotive plant in Cuautlancingo, but would affect thousands of Puebla families, suppliers, and the service chain linked to the automotive industry, one of the driving forces of the regional economy.
The state official emphasized that legal mechanisms are being explored to protect jobs. The National Employment System has around 4,000 vacancies, but the working conditions and salaries are not comparable to those at Volkswagen, which is causing concern among workers.
Regarding financial support, Chedraui warned that the incentives granted to the automaker—which will total more than 197 million pesos in 2025 —will be subject to compliance with the law and the company’s social responsibility. “The incentives will be reevaluated in accordance with the law,” he stated.
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