Workers at Volkswagen‘s Puebla, Mexico, plant were due to go on strike later today (Wednesday, Aug 19) after rejecting a 1% salary increase and a one-off payment equivalent to US$425.

VW said that it was willing to continue talks with the workforce at the plant.

Production at Puebla has been scaled back in recent months amid predictions that Mexico’s production will fall by 30% this year, largely because of falling demand in the US.

VW built 449,000 cars in Mexico last year.