As part of a new manufacturing strategy for the San Luis Potosí plant, General Motors has just announced that it will increase production of the Chevy Equinox and GMC Terrain in Mexico. While the automaker’s local subsidiary said that it will stop manufacturing the Chevy Onix in the Latin country, it also stated that it will increase the workforce of the Mexican factory to raise production volume of both crossovers.
The end of the subcompact car’s production in Mexico next May will not imply a job cut at the San Luis Potosí plant, but will rather allow the hiring of 1,300 new employees to increase the production volume of the Chevy Equinox and GMC Terrain starting from the first quarter of the year. As such, that figure will represent a significant 23 percent increase in the plant’s workforce.
“The new manufacturing strategy will result in the hiring of approximately 1,300 new employees, which would be added to the 5,400 who currently work in the San Luis Potosí complex,” said Director of Communications and Public Relations of GM Mexico, Teresa Cid, in to statement. “Hiring began in February, and this year, we should reach about 6,700 employees at the plant,” she added.
In response to serious logistical difficulties in the global supply chain, GM decided to simplify its purchasing processes to make the most of the capabilities of each plant and better meet the demand for vehicles with the greatest growth potential. That’s the case for the high-volume Chevy Equinox and GMC Terrain in North America, whose suppliers are in the region, unlike the Onix with many parts sourced from China.
Increased Chevy Equinox and GMC Terrain production at the San Luis Potosí plant will allow it to meet demand for the updated models, mainly in the United States, Canada and, to a lesser extent, the domestic market of Mexico. Both crossovers received a commercial mid-cycle refresh in the 2022 model year, while also being Chevrolet and GMC‘s best-selling utility vehicles.
In particular, the extra workforce to increase production volume at the San Luis Potosí plant will allow the company to improve the supply of GMC Terrain units. Unlike the Chevy Equinox which is also made in Canada and China, the Mexican complex is the only facility where GMC’s compact crossover is currently produced to cover the U.S. market, in addition to Canada, the Middle East and Mexico.