JAC México is adjusting its labor model ahead of the country’s 2027 transition to a 40-hour workweek. The company employs about 1,000 workers at its Ciudad Sahagun, Hidalgo, plant, where it currently operates a single eight-hour shift from Monday to Saturday. Giant Motors Latinoamérica CEO Elías Massri said the reform comes during a planned growth phase supported by a MX$3 billion investment announced in July.
The expansion will double the number of production lines from four to eight, with workforce growth expected to scale accordingly. Massri said the facility “is ready to produce up to 60,000 units annually,” noting that output this year will close at 30,000 units. He described the company’s operations as flexible: “As demand grows, we adjust with more workstations, more shifts or half shifts, or staggered shifts.”
He added that the company had already identified the need to improve workplace quality. “This reform is very appropriate because it not only seeks for people to have a well-paid job, but for them to feel comfortable and supported,” he said. Non-financial benefits are also a priority: “For us, non-economic compensation is key—employees must feel at ease and have a healthy labor relationship.”
Industry data reflects varied perspectives on the reform. A survey by Kelly found that 55% of automotive companies agree with the 40-hour week, 27.75% partially agree, 9.57% disagree and 7.66% have no defined position. The study also reported that 29.67% of leaders expect schedule reorganizations across production and logistics, while 23.44% anticipate higher labor costs linked to hiring and IMSS contributions.
Massri said gradual implementation benefits manufacturers. “Doing it gradually is a good decision because it allows us to adapt,” he said, adding that the company’s internal plans go beyond regulatory compliance: “These plans are part of an ecosystem we must adapt to.”
Sara Silva, marketing and communications director at JAC México, said the company is preparing a 2026–2030 strategy focused on internal culture and employee engagement. The plan, she said, will “expand the outlook outward, but above all inward, to generate a sense of belonging.”