Volkswagen is extending the Easter holiday by one week at its central Mexico plant to reflect lower demand for new vehicles, Bloomberg News said.

The Puebla, Mexico plant builds the new Beetle and Jetta (Bora) and is the sole remaining Volkswagen plant building the company’s classic rear-engined ‘Bug’.

According to Bloomberg News, workers typically receive one week's paid holiday in April, and another in July. However, this year workers will have April 14-28 off, and no July holiday, VW told Bloomberg News.

The news agency said the plant employs 13,765 and noted that VW's US sales are down 9.8% this year.

The Jetta is the top-selling European-badged import in the US, typically selling about 25,000 a month.

Reuters on Monday reported that Nissan’s Mexican plant would halt production for three days this month to reduce inventories amid low US demand and would also lower its production goal for 2003.

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