VW's Mexico staff vote to strike

The union said its 9,700 members at the Puebla plant will strike at 1100 local time (1600 GMT) in a row over pay.

While VW is offering a 4% pay rise, the staff are demanding an 8.5% increase. The firm said the Mexican government is to chair talks to secure a deal.

In 2004, workers at the plant - which makes 300,000 Beetles a year - gained a 4.5% pay rise after a four-day strike.

Another walkout at the Puebla facility in 2001 lasted 18 days before the two sides reached agreement.

The latest decision to strike was reached by a narrow margin of 54% of union members in favour, and 46% against.

Job cuts

Germany-headquartered VW warned earlier this year that it may need to cut 20,000 jobs globally over the next three years to boost productivity.

Like most European and US carmakers, VW is suffering from tough competition and price cuts in the face of stagnant sales.

The new Beetle was introduced in 1998 and the Puebla factory now makes two main models, the original hatchback and a convertible.

It replaced the original Beetle, which was made from 1938 to 2003 and was one of the best-selling cars of all time with more than 22 million vehicles produced.

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