Volkswagen, Audi on hold as Mexican state Puebla won’t reopen

Puebla, a state in Mexico state, said it is not ready to reopen its automotive sector because of the ongoing increase of the coronavirus. Volkswagen and it’s luxury brand unit Audi have major plants in the state.

Puebla’s Governor Miguel Barbosa signed a decree on Friday stating that the conditions for the return of the automotive and construction sectors are not favorable, according to a statement released on the state’s Twitter account.

Barbosa, an ally of President Andres Manuel Lopez Obrador, has said he wants to resume the state’s economy but not if that is going to put people’s lives will be at stake.

The Mexican unit of Volkswagen had earlier said it was ready to restart operations in Puebla and the state of Guanajuato on June 15.

So far, Mexico has registered 133,974 official coronavirus cases, of which are 15,944 deaths, and 98,064 have shown recovery.

Most Mexican auto plants began resuming earlier this month after Lopez Obrador’s administration classified operations in automaking, mining and construction as essential activities from June 1.

The automotive industry accounts for 3.8% of Mexico’s gross domestic product (GDP) and 20.5% of its manufacturing GDP and directly employs almost a million Mexicans.