Volkswagen reduces production in Puebla amid falling U.S. exports

Volkswagen has adjusted production at its plant in Puebla, Mexico, by canceling one of its three production shifts. This decision follows a significant decline in exports of Jetta and Tiguan models to the United States, which accounts for approximately 70% of the vehicles produced in Puebla.

Data from the Mexican Automotive Industry Association (AMIA) shows that Jetta exports dropped by 43.7% in July compared to the previous year, while Tiguan exports fell by 34.8%. These declines are attributed to market conditions in the U.S. and applied tariffs on vehicles manufactured in Mexico. Consequently, total production in Mexico decreased by 7.2% in July.

Carlos Sosa, president of Canacintra Puebla, stated that a domino effect of layoffs in the auto parts sector is not expected. He noted that local plants supply various manufacturers, including Tesla, and that the region is working to migrate toward advanced manufacturing. Sosa emphasized that Volkswagen’s adjustments are a prudent response to high competition and global economic conditions.