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Current DateTime: 01:00:10 29 Jan 2009
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Volkswagen announces Mexico staff cuts, shutdowns
By: The Associated Press | 28 Jan 2009 | 09:07 PM ET
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PUEBLA, Mexico - Volkswagen's Mexico subsidiary has announced personnel reductions and temporary shutdowns aimed at cutting production by 20 percent at its central Mexico plant.

Some 800 workers will be let go and the plant in Puebla state will close for a week in March and extend its regular Easter vacations.

Volkswagen de Mexico's president says production on some models will be reduced to a single shift to reduce inventories.

The plant currently employs about 9,400 people. The company exports many of the vehicles built at the Puebla plant to the U.S. market, and said Wednesday that sales in that market have slowed.

The Mexican Auto Industry Association has said industrywide production in Mexico could plummet up to 20 percent in 2009.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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