Overview
- Late August 2026 Volkswagen announced it will indefinitely eliminate one of three shifts in the Puebla segment that builds the Jetta and Tiguan while saying both models will continue to be produced there.
- The company opened a workforce-adjustment program that it says will cause about 700–800 job exits through direct layoffs, reassignments and roughly 400 voluntary retirements.
- Volkswagen blamed higher U.S. tariffs and softer North American demand for making exports from Puebla less viable, a shift that has altered the plant’s cost and production calculus.
- Model sales have diverged in the U.S., with Jetta shipments falling in early 2026 and Tiguan volumes rising sharply, complicating how much capacity Puebla needs for each line.
- The cut comes as Volkswagen pursues a global restructuring and follows other automakers’ North American production moves, and a recently negotiated 10.04% labor agreement at Puebla will go to a worker vote on September 11, 2026.