[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 18 August, 2004, 19:50 GMT 20:50 UK
Mexican car workers stage walkout
Volkswagen's New Beetle
Volkswagen's profits fell last year
Workers at a Volkswagen car plant in Mexico are striking in a row over pay.

Staff walked out of the factory south of Mexico City on Wednesday morning after calling for a 8.5% pay rise.

The Puebla factory, which employs 9,500 staff and is one of Mexico's largest car plants, is VW's sole manufacturing centre for its New Beetle model.

Talks between management and unions were expected to resume later on Wednesday in an effort to resolve the strike, the first in three years.

Unions representing the plant's 9,500 staff have rejected a 4.5% pay rise.

The factory has a history of labour disputes.

Beetle icon

Workers were on the verge of strike action last year before accepting a 5.25% rise.

In 2001, staff stopped work for 18 days before settling upon a 10.2% pay deal.

The factory was the last in the world to manufacture VW's iconic Beetle before it ceased production last year.

Two thousand jobs were subsequently cut. The factory also produces VW's Jetta model.

Volkswagen suffered a 20% fall in profits in the first half of 2004.

The German manufacturer is cutting costs across its global operations in an effort to make savings of 550m in the current financial year.




SEE ALSO:
Volkswagen issues profit warning
23 Jul 04  |  Business
VW cuts prices for Chinese buyers
17 Jun 04  |  Business
VW sees big upturn in Golf sales
30 Apr 04  |  Business
End of the road for the Beetle
06 Jun 03  |  Business
Beetle-maker lays off 2,000 staff
30 Jun 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific