General Motors (GM) has canceled one production shift at its Ramos Arizpe assembly plant in Mexico, which manufactures electric vehicles for Chevrolet, Cadillac, and Honda for the North American market.
The plant had previously increased its production schedule to three shifts last May, but it has now reverted to two shifts per day as of January, a spokesperson confirmed to Automotive News. Vehicles produced at the site include the Chevrolet Blazer EV, Chevrolet Equinox EV, Cadillac Optiq, and Honda Prologue.
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The production shift cancellation is expected to eliminate around 800 jobs, according to estimates from Yahoo. However, Honda has clarified that production of the Prologue will not be affected by the decision.
The company described the move as a routine adjustment aimed at meeting customer needs and adapting to market conditions. “We will continue to carefully manage production and inventory for our entire product lineup to meet anticipated demand in 2025,” Honda said in a statement.
GM also explained that the adjustment followed Honda’s decision to reduce Prologue production volumes, alongside a shift in the mix of GM vehicles being produced at the facility. “In early 2025, we changed the plant’s production schedule to increase efficiency following the decision by Honda to reduce Prologue volumes,” GM stated. “The company is working with impacted employees and stakeholders to ensure an orderly transition.”
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The move to cut a shift is likely influenced by the recent tariff increases imposed by the U.S. on imports from Mexico, Canada, and China. The additional 25% tariffs on goods from Mexico and Canada, coupled with a 10% tariff on Chinese imports, have created regulatory uncertainty, impacting GM’s plans for electric vehicle production.
Although GM had ambitious plans to ramp up EV manufacturing at the Ramos Arizpe plant, the political and regulatory landscape in the U.S. may now cause those plans to shift. The facility began its conversion to electric vehicle production in 2022.