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Here’s Why GM Cut A Shift At One Of Its Plants In Mexico

General Motors recently cut a shift at it San Luis Potosí assembly plant in Mexico and is planning temporary layoffs for its CAMI plant in Canada.

Both of these plants produce the Chevrolet Equinox, with the Mexican plant producing it for local and South American consumption and the Canadian site serving the rest of North America. San Luis Potosí also builds the Chevrolet Trax and GMC Terrain.

We were a bit surprised to see GM cutting back on crossover production, as US Equinox sales are up 15.8% year-over-year through to Q2 and global crossover demand has been very strong recent years.

The predicted automotive market downturn seems to be here, however, as GM was forced to scale back production in order to match anticipated waning demand, it confirmed in a statement to Automotive News Canada.

Sales in export markets seem particularly low, with GM saying it had to permanently cut the shift at San Luis Potosí due to “variations in the industry forecast in different export markets.”

The layoffs at CAMI, which will include all employees at the plant not working in trades, will only be temporary, but it’s not yet clear when the Ingersoll, Ontario based plant will come back online. The downtown is currently being handled week-to-week and the plant could return to work within two or three weeks, but more temporary layoffs are planned for December as well.

GM plans to shut down the Oshawa Assembly plant before the end of this year, which is located just a couple hours north of the CAMI facility. Oshawa Assembly builds the Cadillac XTS and Chevrolet Impala sedans and completes production on partially assembled, previous-generation Chevrolet Silverado and GMC Sierra pickup trucks. Once the production line is shut down in Oshawa, the site will focus on limited parts production and will house an outdoor advanced vehicle test track.

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Source: Automotive News Canada

Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. If GM really wants a good place to cut costs, it should cut spending on “autonomous” vehicles. I know GM, like other automakers, has pledged to spend big money in this area. But it will take decades before autonomous vehicles reach their imagined potential, if indeed they ever do. Meanwhile, as thanks for automakers’ pains, Google has released a statement aiming to make private vehicle ownership more difficult. Judging from recent news reports, it seems quite likely Google is now under the control of Chinese Communist operatives, but never mind that. The question GM should ask itself is this: Why would General Motors invest such significant amounts of capital into a scheme that will ultimately go against its own best interests, as well as those of consumers? If Google’s arguments about autonomous vehicles are true, then, for automakers, they constitute economic suicide.

    Reply
    1. Barra’s GM is about three years behind the times when it comes to recognizing trends- witness the shift to CUVs/SUVs that FCA saw four years ago. It will be about another two years where GM- like others are starting to see- realizes that this fantasy is decades off and perhaps act accordingly.

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      1. How many FCA sold electrique cars since 2012 ? A big zero

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        1. Yes, and how many Rams has FCA sold in the past year? Competitors are eating the General’s lunch.

          Reply
  2. I will never forgive GM for killing off the Impala, LaCrosse and XTS though I would be willing to let the last go provided they keep making the nice looking CT6. I also agree that they should quit spending money hand over fist on a fantasy that is nowhere near ready and that most consumers do not want anything to do with. People are not going to give up freedoms that we have had for over a hundred years and be dictated to when and if they will be able to hail a self driving car with no option to own a vehicle. Just because some crack pot millionaire gets these ideas in there heads does not mean it will come true.

    Reply
  3. Amen to both comments above!

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  4. Well here is what I am observing when it comes to Autonomous. Please note I am not an Autonomous fan what so ever.

    I do read and keep up with the Autonomous development. I agree it is a ways off for full control if ever. But much of what is being learned will be applied in various areas like shuttle buses at airports ets.

    But here is the key. Automakers are not seen as tech companies and because of this they are not getting the investment as they should get. Case in point Ford stock has struggled at $10 a share for a long time even with the Ford F series trucks selling well. FCM sturggles at $16 and both will need partners to move forward in devleopment of new products.

    GM on the other hand as well VW and Toyota have invested into technologies thart are developing. The advanced tech is what is moving stock higher and higher. While they may be putting money here it is making money as stock at GM is 4 times what Ford has right now and GM has really yet to produce much of this tech for the market.

    I know it is crazy but just look at Tesla. It is seen as a tech company and not so much an automaker. They have lots of ideas and future plans yet they sell a reletive small number of vehicles and struggle making a profit and pay no dividends. Yet people invest in them like crazy with hope the tech one day will pay off.

    So many investors are looking for their own IBM, Apple and Amazon. They appear to invest with long term hopes and are willing to wait for them. Most will not pay off but in the mean time companies like GM collect the money with higher stock values and capital that goes not just to thes tech areas but development into things they will need in the future.

    At some point GM wants to be the company people go to when they need to buy a vehicle system. They once were like that with their AC systems and transmissions. In the future gudence and EV systems may be what they sell or liscens to others to make money.

    The future may hold more with being a tech supplier than the mfg.

    To me Autonomy is a way to prop up stocks. Also it is like the moon shot. While landing on the the moon itself did not change life on earth much the investment into the technology to get there was what really changed the world. I suspect the Autonomy may be similar as they will discover many other things by investing in these systems. we may find everything from new wepons to medical applications for the new technology.

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  5. I am surprised about the Chevy Equinox production slowdown. I have a 2009 Equinox and it has been extremely positive. My brother, who lives in Florida and owns a Mercedes-Benz sedan, borrows my Equinox when he visits me!

    So, why doesn’t GM offer a hybrid Equinox, using the Chevy Volt technology, while the foreign brands (Hyundai, Volvo, BMW, Toyota, and even Porsche) offer hybrid CUVs? Ford has learned the lesson, and will offer both the Escape and Explorer hybrid models for 2020.

    Reply
    1. It’s industry-wide the cutbacks are coming. Ford trimmed it’s workforce by thousands this year, don’t matter too much if they offer a better model to weather the storm.

      Reply
  6. I recently purchased a new 2019 Equinox and found the vast majority of them were imported from Mexico. So I of the opinion that the information presented in this article misleading and/or poorly researched.

    Reply

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