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.
Source: Automotive News Canada