GM began exporting the popular Chevy Onix compact car from China to Mexico in May of this year after domestic production of the vehicle wound down at the GM San Luis Potosí plant earlier in the month. However, the automaker already builds the Chevy Onix at the GM Gravataí plant in Brazil, so the decision to import the vehicle from China into Mexico may seem strange to many onlookers.
During a recent interview with GM Authority assistant editor Marcos Bureau, GM Mexico public relations and communications manager Manuel Ávila Fonseca provided some more background on the decision to export the Chinese-built Chevy Onix into Mexico rather than the Brazilian-built model.
“On a global level, GM has a production planning where it assigns a certain capacity to each plant and the markets that will be supplied with each production,” Fonseca said. “In the case of Chevrolet Onix for Mexico, it was defined that the most convenient thing was to bring it from China.”
The Chevy Onix had the important distinction of being Brazil’s best-selling car for 59 consecutive months between August 2015 and June 2020 and is also a hot-selling model in neighboring Colombia. As Fonseca explains, this strong demand has essentially maximized the capacity of the Gravataí plant in Brazil. It therefore makes sense to import the Chevy Onix into Mexico from China, where it’s already being built for local consumption at the GM Dong Yue plant, rather than rely on the Brazilian plant to serve yet another populous market. Production of models destined for Central American markets like Panama has also moved from Brazil to China.
As we pointed out when the Chinese-built Onix first began arriving in Mexico last month, most of the suppliers for GM’s modular Global Emerging Markets (GEM) platform, which the Onix utilizes, are located in the Asian country. This means the Chinese plant will likely be able to better satisfy demand in the Mexican and Central American markets, potentially generating more sales for GM.
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Comments
My first preference is to always buy a product assembled in the states that is an American product. The obvious reason is because I have a strong desire to fully support my country and the American businesses. But something has come up at my work that gives another really strong reason. I have a fleet car (Volvo) XC40 EV that is made in China (remember, Volvo is now owned by a Chinese company). However, about two months ago when I had the driver scheduled to come pick the car up, I had to cancel because the car would not charge. Long story short, the car is still sitting in back and can’t be driven because the needed part is only made in China and with them now in Covid lockdown again, the part is not being produced.
I fully understand that parts for all cars, including my American brand and American assembled Malibu, come from all over the world including China and even Ukraine. However, my chances of having my Malibu laid up for months like a car coming out of another country is much lower. Another example: Back in 1998 I leased a brand new Cadillac Catera. One month into the lease, I rear ended someone and totaled her car while doing massive damage to my car. Thankfully neither of us were hurt (she was in a Buick Skylark). Anyhow, the parts for the Catera were coming out of Germany. My car was at the body shop for a month with zero parts in site, so I purchased a 1992 Lincoln Continental. The Catera was at the shop for over 4 months.
Probably best to just buy an Asian brand made in the US, like a Honda, Toyota, or Nissan.
Nate: Hahaha. Good one.
Never! I’ll walk or ride a horse before I’d ever allow anything from Japan in my driveway. Not only that, but why would I downgrade to a Japanese brand from the obviously better Malibu?
Why support communist China who treats their ppl like scum.
Dan no offense I like you I do but everyone on here knows your stance you make it perfectly clear every chance you get.
Shane: No offense taken and I will continue to make that same point over and over till the day I die. I’m passionate about it as should others that have not sold out. But a point that can be made is that in my original post above I didn’t make a single mention of Japan or my obvious dislike of anything with them. Nate is the person who (probably just trying to get at me) made the stupid comment. So I responded in kind.
I truly feel it would do the average American a great service to dig in and do some actual research on Japan and what they are about, who they really are and what they have done and continue to do. Once those people have done that research, been to Japan and worked for a Japanese company like I have, then and only then can they speak out about my dislike.
I’d say it kinda makes sense because the Lat/Am factories that once made Onix, Cruze and etc. now making high profit CUVs. The Mexican facilities now making CUVs for Mexico and America, OTOH they could easily expand the facilities to make CUVs and Onix, Cruze and others.
My 2004 GM car imported from Australia needed a new driver’s side window. Dealer had it Fedexed overnight from down under. They broke it they paid for it right away.
Well Dan B let me tell you about my 2015 Sliverado Z-71 LTZ 6.2 that was assembled in Ohio but has now been sitting in a Chevrolet’s Dealerships lot for over a year waiting on parts for the 6.2L engine that is built in Vietnam. I can’t even get a complete engine. GM won’t replace it (their call) since it is still under warranty. No complete engines are available. At this point I am ready to Powertrain USA and buy a rebuilt one and have it shipped to the dealer, but Powertrain USA needs my engine first.
The moral of this story is, just because it says Chevy doesn’t make it American made.
David Hall: Sorry to hear about that. I certainly wouldn’t be happy.
I fully understand that just because is says Chevy (or Ford, etc) that it doesn’t mean parts are made here. See my original post above and the second paragraph. That’s exactly what I said.
Likely story. I bet it’s because the Chi-coms twisted GM’s arm. Just like how 1930’s Germany did with IBM. That’s how these countries work.
The thing is that the Onix imported from China has been “de-content” from the one made in Mexico. Mexico made Onix have 2 engine choices: 1.0L Turbo & 1.2L Turbo both 3 cylinders, very efficient by the way and both gas zippers; just look at the official fuel consumption charts. These engines were said to be global, as they go into all Emerging Market vehicles, like the Tracker, the new Tornado mini pick up, the new Spin and so forth.
On the contrary the China made Onix is not global. They did not follow GM strategy and instead they put a locally made 1.3 L NA and a 1.0L Turbo, but not the one made in Brazil or Mexico, but engines made by Wuling or FAW. Old alikes, partially copied in design.
So customers will get less for more as soon as the China made Onix starts selling in Mexico. Per the note of GMA, the 1st shipment departed China on May 22nd therefore will not be arriving into Mexico until the last week of June or early July, that if the ports are not full of ships stranded and unable to unload their payloads.
In summary, China is doing as they want, ignoring GM strategies.
Labor costs are lower than Mexico’s. Mexico was the cheapest until China came along.
Interestingly enough, not particular to cars, but here was a pleasant shocker to me.
I bought a new TV. When I got home I found it to have been “made” (really assembled with the case injection molded) in Mexico.
This proves to me that shipping cost can overcome labor imbalances. Not USA made but at least made on the same side of an ocean.
My point being that the Chinese plant probably has capacity and it probably is not any cheaper to source a car from China after shipping is added. GM did not want to push other production out of the way in Mexico to make the Onix there. I bet it is shipped from China based upon excess capacity at that plant. Remember, China is pushing electric vehicles not IC vehicles.
The important thing is -> Think globally and, as far as possible, only buy local products where you live.
You should only import niche products and always pay attention to where they are actually produced, as many manufacturers hide their origin.
And buying this way is really ecological!
Have a nice weekend!