UPDATE 1-Volkswagen's Mexico unit extends talks with union, avoiding strike

(Adds comments from Volkswagen, details)

MEXICO CITY, Nov 6 (Reuters) - Volkswagen’s Mexico unit has agreed with its local union to extend talks over profit-sharing until January 2021, avoiding the possibility of an imminent strike, the company said in a statement on Friday.

The Independent Union of Automotive Industry Workers for Volkswagen (SITIAVW) at the start of October had said it would halt operations by Friday if the company did not pay what the union described as a debt dating to a 2015 dispute over profit-sharing benefits.

The pre-strike period will now continue through Jan. 29 to allow time for authorities to issue a definitive resolution to the matter.

“Volkswagen duly guarantees the interests of its workers during this process,” the company said.

Volkswagen’s plant in the central state of Puebla makes the Taos, Tiguan, Jetta and Golf models for sale in the United States, Mexico and other markets, and is one of the largest auto factories in Mexico.

Reporting by Sharay Angulo and Raul Cortes, Writing by Daina Beth Solomon; editing by Drazen Jorgic, Kirsten Donovan