VW’s recently expanded plant in Puebla, Mexico, has capacity to make 450,000 cars a year and is gearing up for the redesigned Jetta launched recently in New York

VW’s recently expanded plant in Puebla, Mexico, has capacity to make 450,000 cars a year and is gearing up for the redesigned Jetta launched recently in New York

Potential strike action at Volkswagen's Puebla plant in Mexico has been averted following settlement of a wage dispute with its main union.

Talks between the German automaker and its labour organisation concluded today (18 August) allowing the site to continue producing its daily output of 1,800 models.

"The negotiations started with the request from the union of 8.5% - that was rejected - we finished with 6.09%," a Volkswagen spokeswoman in Mexico told just-auto.

"This is the highest increase in the Mexican automotive industry. The rest of the manufacturers have ended their negotiations and we were the last - we gave the highest increase."

Despite the possibility of a walkout, the VW spokeswoman added there had been no disruption to shifts and that the 1,800 models were being produced normally.

The Puebla plant manufactures two versions of the new Beetle, a Golf variant and the new Jetta due to be introduced in Europe at the end of the year."

The union could not immediately be reached for comment in Mexico.