Production At GM Silao Truck Plant In Mexico Halted For Two Weeks22
A parts shortage is forcing GM to keep its truck-producing Silao Complex in Silao, Guanajuato, Mexico idled until March 21st, The Detroit News reports. The shutdown has been ongoing since last week, though GM hasn’t mentioned exactly which parts are temporarily unavailable.
Customer demand for the pickups produced at the plant remains strong, company representative Dan Flores noted. He also said The General is “actively working with our suppliers to resolve this supply chain challenge.”
Two of GM’s high-profile light-duty truck nameplates are affected, the Chevy Silverado 1500 and the GMC Sierra 1500. The Silao plant has been operational since 1996 and focuses on production of these two truck models for the American continent.
Meanwhile, GM plans to pause U.S. production of the same two truck models at its Fort Wayne Assembly plant located in Indiana. The pause is scheduled to begin during the week of March 27th, 2023 and will last for two weeks. GM said excess supply of the trucks is adding up, with 100 days supply of the Chevy Silverado reported at the end of January 2023.
GM is offering multiple incentives in the U.S. for the Silverado 1500, likely in an additional effort to reduce inventory levels to the 50 to 60 days supply it now actively prefers.
The Silverado discounts offered in March 2023 can be as much as $4,250 on the 2022 Chevy Silverado 1500 and up to $3,250 on the 2023 Chevy Silverado 1500, depending on the specific configuration and market. Buyers can also currently benefit from interest-free financing and deferred monthly payments for 90 days.
Simultaneously, GM is offering up to $4,500 in March 2023 discounts on the 2022 GMC Sierra 1500 and $2,250 on the 2023 GMC Sierra 1500. Some GMC Sierra buyers qualify for low-interest financing and deferred monthly payments similar to those available for Silverado purchasers.
Production of the 2023 Chevy Silverado 1500 began at the GM Oshawa plant in Ontario on August 20th, 2022, at the GM Fort Wayne plant in Indiana and GM Silao plant in Mexico on August 29th, 2022, for both Regular Cab and Crew Cab models, and on September 6th, 2022, for Double Cab models.
Meanwhile, production of the 2024 Chevy Silverado 1500 is set to kick off on July 17th, 2023. Dealers will be able to order new units of the 2024 Chevy Silverado 1500 starting in June. Both the 2023 and 2024 model years feature only minor changes following the fifth generation’s mid-cycle refresh with the launch of the 2022 Chevy Silverado 1500.
The upcoming 2024 GMC Sierra 1500 also introduces only minor changes and is scheduled to see start of regular production (SORP) on July 17th, 2023.
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100 day supply and discounts? Man, I wish Canada would have those problems…
100 days of 4-bangers no doubt… Looks like they cant give those away
They’re actually selling well and the discount is a tactic to try and get people who are too old to understand that a turbo 4 is better than a naturally aspirated V8. That is all it is, they are moving them just fine. When people test drive them and realize it drive better than the V8’s with all the torque way down low, the added discount might entice them to buy one as opposed to being stuck in some dated image of V8 or nothing in a truck. Look at the Ford’s people accepted that eventually after trying it. The 2.7 is one of the stoutest motors GM has built and tested, numerous engineers in testing have commented how over built it is and how hard it is to kill that motor in testing. I put money on that lasting longer than the 5.3 unfortunately (I am a V8 guy but I also understand and look at facts not just drumming up a dated opinion without any data to back it up).
Sitting on storage lots to reduce channel supply and keep prices artificially inflated.
Hopefully this strategy blows up in their face when they have no cash flow, but in reality it will probably just hurt dealers the most.
It’s not the 4 cylinder that repulses me, it’s the 8 speed that lives behind it.
Looks like they can’t give away the 8-poppers either.
No sh$t eh…. Short end of the deal on just about everything up here- it’s not just GM screwing us.
It’s time they wake up to the fact these things are way overpriced. Start with 8-10k off msrp and even that’s a little unrealistic.
The greed of OEMs (and stealerships) is coming back to bite them in the @ss – during the ‘chip shortage’ legacy automakers put their chips in the higher end models (and stealerships marked up what they could) which dramatically drove up the average transaction price last year and they’ve continued to preferentially produce the higher end specs which are building up on dealer lots. So, now, even when stealerships are skimming less, its hard to find a base model on the lot full of $60-80k trucks in an era of high interest rates. In addition, the base models are still overpriced – a price war is on the horizon, likely after Q1 results are posted. Idle plants are money furnaces, it will be interesting to see how GM plays this as they say they refuse to chase market share.
So the Fort Wayne shutdown is to control inventory & the Silao shutdown is because of a “parts shortage”, Right…..
Yeah, which is it? Someone is fibbing as my beloved grandmother used to say.
They might be able to get the supply down to 60 days on the trucks but it will likely take more than two weeks of plant downtime. They might want to announce 3 months of downtime because the trucks are not selling at the prices GM is requesting. GM is about to have a major cash flow problem. Do you think GM Executives took Economics 101? Cars and Trucks are very price elastic. You raise your price too much and people will quickly switch to a cheaper option. Even “truck” buyers will switch to a “car.” Cars and Trucks are commodities. Your “car” and “truck” commodity is priced by the market. If your “cars” and “trucks” don’t sell then you are forced to drop the price, otherwise, a competing manufacturer picks up your sale. This is what is happening to GM right now. 10 bucks and a steak dinner that 1Q23 earnings are like shtf, unless GM executives continue to lie like that did on 4Q22 earnings forecasts.
They. Are. LYING.
This is BS there’s no way there’s a 100 day’s supply of Silverado’s right now. Someone tell me where they are because my Midwest dealers don’t have them, unless you are talking about the 4 cylinders that no one wants. GM continues to cut its own throat by not building what it’s customers want.
All their trucks should be made in the USA not Mexico! They charge the same for the ones made here as the ones made in Mexico. As for making a truck for everyone they quit doing that in 2018, now you can only get a regular cab long bed 1500 in an ugly low option work truck not an LT or higher trim like you used to be able to!
Right ! People who work with a truck for a living would like some creature comforts too ! You can still get a Sierra 2500 regular cab SLE trim, but who wants 12 m.p.g. ?
You can now get the reg cab in the short bed again too.
Only in the ugly work truck or custom!
That is correct.
Try ordering a truck, you can’t get one for 6 months and they are shutting down plants. It makes no sense.GM keeps pushing the four-banger truck, is that what the customer wants or is that what GM wants to sell and make a great margin of profit on? Read the fine print on the adds, on in stock inventory at great prices and Bla Bla, Bla. So, GM screws up and builds what they want and not what the customer wants, shuts down plants and gives 10% raises, who in the hell gets that kind of raise in these economic times, and how much are they paying in Mexico to start with compared to USA? Lower the price and get the inventory gone and build what consumers want…
I’ve heard a couple rumors about the Silao shutdown.
One is that they were hit with a ransomware attack
And the other is that there was some kind child labor violation.
Don’t know if either of true.
Just thought I throw them out there.