GM Strike Leads To Thousands Of Layoffs In Mexico

General Motors was forced to cut production at its plant in Silao, Mexico, this week following a disruption in the supply chain as a result of the latest GM strike, as confirmed by GM spokesman Dan Flores. The production cuts include temporary layoffs for some 6,000 workers.

The production facility was idled as a result of a parts shortage stemming from the GM strike. Just yesterday, we reported that GM supplier factories in the Mexican city of Piedras Negras were forced to cut production as well, with hundreds of workers furloughed. Production at the General Motors Ramos Arizpe plant, which is responsible for producing the Chevrolet Blazer and Chevrolet Equinox, may also be in danger, according to a report from the Spanish-language website El Financiero, although it remains operational for now. GM’s San Luis Potosi plant, which produces the Chevrolet Trax and Chevrolet Equinox, also remains operational.

For reference, the Silao facility produces the Chevrolet Silverado, Chevrolet Cheyenne, and GMC Sierra. As a side note, the Chevrolet Silverado WT trim level is simply known as the Silverado in Mexico, while higher trims (LT and up) are called Chevrolet Cheyenne.

Thousands of temporary layoffs have hit other GM facilities in Canada and the U.S., including the jointly operated Duramax Engine Plant in Moraine, Ohio, and the St. Catharines powertrain facility in Ontario as a result of the GM strike.

The reported furloughs in Mexico follow on the heels of reports that the UAW rejected a new offer from General Motors this week, citing deficiencies with regard to healthcare, the role of temp workers, and wages. The UAW responded with a counterproposal.

Roughly 50,000 UAW members are currently participating in the GM strike across the nation, which went into effect following the expiration of the UAW’s previous labor contract with General Motors on September 15^th. It is currently the longest autoworker strike seen in decades.

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Source: Automotive News