APTV · 10-Q · 2026Q3 · Full report

Mexico Labor Regulation

Aptiv PLC · 2026-11-03 · Importance 42 · Surprise 40 · In source text

Mexico implemented statutory minimum-wage increases of approximately 13% (5% in the Northern Border Zone) effective January 1, 2026, following a 12% increase effective January 1, 2025. The government has indicated it may begin reducing the work week from 48 to 40 hours as early as January 1, 2027, in gradual two-hour annual steps. Aptiv says these and other labor reforms have significantly increased Mexican labor costs and prompted it to review more cost-competitive jurisdictions and accelerate manufacturing automation; it has mitigation measures in place but cannot predict the ultimate impact.

Key facts

• Mexico may begin reducing the work week from 48 to 40 hours as early as January 1, 2027, through a gradual reduction of two hours per year. source
• Aptiv said increased Mexico labor costs have necessitated reviewing more cost-competitive jurisdictions and accelerating manufacturing automation. source
• Mexico implemented statutory minimum wage increases of approximately 13% (5% in the Northern Border Zone) effective January 1, 2026, and 12% effective January 1, 2025; Aptiv said labor costs in Mexico increased significantly. source

Impact estimates