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Audi Mexico strike ends as workers approve salary increase

Tuesday, 20 February 2024 21:14:05 (GMT+3)   |   San Diego
       

Workers at the Mexican unit of German automaker Audi approved a salary increase that the company agreed upon with the union, bringing an end to the 26-day strike, the Ministry of Labor reported in a statement.

The majority of workers approved the global salary increase of 10.2 percent, an increase composed of 7.0 percent directly to the salary and an additional 3.2 percent in benefits.

The strike began on January 24 and ended on Sunday, February 18. According to statistics from the business chamber: Mexican Association of the Automotive Industry (AMIA), in 2023 Audi manufactured an average of 480 vehicles per day, placing it as the ninth largest manufacturer.

With the strike, production was stopped for a week. Thus, last January, Audi manufactured only 250 vehicles per day, 45 percent less compared to the 455 units in the same month of 2023, according to data reviewed by SteelOrbis.

Considering the daily average for the year, with the 26-day strike, around 12,500 units were no longer produced. In addition, the automaker's supply chain, made up of hundreds of companies, was affected.

In all of 2023, Audi contributed almost 5.0 percent of the total automotive production in Mexico, which totaled 3.78 million. Considering Audi and Volkswagen, the two companies of the same group contributed 13.9 percent of the total, which would place it as the third largest producer of vehicles, only surpassed by 16.3 percent of Nissan and 19.1 percent of the leader: General Motors.

According to the International Organization of Motor Vehicle Manufacturers (OICA), Mexico is the seventh largest producer of vehicles in the world.


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