Why Trouble for Volkswagen Means Mexico Headache Nacha Cattan - Bloomberg Business
go to original October 8, 2015

The Long Rise and Rapid Fall of Volkswagen (Bloomberg Business)

As Germany warns of a disaster for domestic employees of Volkswagen AG, fallout from the company’s emissions-cheating scandal threatens to reach its largest producer of cars for the U.S.: Mexico.

VW has already cut Saturday shifts at its Puebla factory, the largest stand-alone plant making VW brand cars outside of Wolfsburg, where the company is based. That has led to increased concern among the estimated 15,000 workers that jobs may go next.

“Volkswagen messed with all of us,” said Alfredo Rodriguez, 29, who fears his lack of seniority at the factory makes him more vulnerable. The father of two boys 6 months old and 8 years old got a full-time contract only three years ago, and now helps install the wheels on the cars being built. “The thing that worries me most is we don’t know what’s coming."

With VW refusing to provide details, business groups including the state’s employers association are concerned things will get worse at the VW factory and the plant being built by the carmaker’s Audi unit. There’s already a hiring freeze in place, according to the industrial chamber of commerce, and the company hasn’t said how it will handle a global recall of almost 11 million diesel autos with rigged emissions systems. About 20 percent of the plant’s 207,000 vehicles sent to the U.S. in 2014 included the engines at the core of the scandal.

Read the rest at Bloomberg Business

Related: Consumer Defense Prosecutor May Impose Almost $7B Fine on Volkswagen in Mexico (Sputnik)

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!