Volkswagen halts Mexican output for two weeks

MEXICO CITY, April 27 - Volkswagen AG is temporarily halting production at its factory in Mexico, where the popular New Beetle model is produced, due to weaker global demand, the company said on Monday.

The plant's 9,400 workers will down tools for two weeks from April 27 in the latest in a series of short-term stoppages at the factory due to the global economic slowdown; but the firm said it could be the last shutdown this year.

"Things are a lot better for us than they are for other (carmakers)," said company spokeswoman Consuelo Minutti. "Global markets have shrunk and that affects us, but less severely than it has done for others."

She said the stoppage is not linked to the outbreak of swine flu that is suspected of killing 149 people across the country.

Volkswagen has overtaken General Motors Corp as Mexico's biggest carmaker in recent months because of greater exports to Europe.

Volkswagen's plant in Puebla, which lies in central Mexico, produces about 1,500 cars per day. Output was 450,000 in 2008.

Most of the cars made in Mexico are sold in the United States, where car sales have been hard hit by the recession.