GM reduce a shift at its Ramos Arizpe manufacturing plant in Mexico, the place it builds the Chevy Equinox EV and Honda Prologue. Based on GM, the transfer was resulting from Honda’s resolution to gradual Prologue output. With gross sales of its sole electrical SUV within the US surging, why is Honda slicing again?
GM cuts shift at Mexico EV plant over Prologue output
Though GM simply added a 3rd shift in Could 2024, the plant returned to a two-shift schedule beginning on January 20.
The transfer was initially considered as a result of its contract to construct the Prologue ended, however it seems that Honda is scaling again.
“This alteration is principally resulting from our buyer Honda’s technique of lowering the manufacturing quantity of the Prologue mannequin,” GM stated in a press release. The shift was added to fulfill increased export demand for gasoline engines and Ultium-based EVs just like the Chevy Equinox and Blazer EVs and Honda’s Prologue.
With much less Prologue EV output, GM now not wants the additional shift in Mexico. Based on Mexico Enterprise Information, the corporate is eliminating 800 jobs on the plant as a result of modifications.
GM additionally stated the modifications have been resulting from “an adjustment within the mixture of manufacturing of GM autos on the website,” so it wasn’t totally the Prologue’s fault. The corporate additionally builds gas-powered Chevy Blazers on the website.
Honda didn’t verify the modifications, however a spokesperson (through Automotive Information) stated, “It’s fairly regular for our enterprise to make manufacturing changes in the course of the 12 months as a way to meet buyer wants and market circumstances. We are going to proceed to rigorously handle manufacturing and stock for our whole product lineup to fulfill anticipated demand in 2025.”
After delivering the primary fashions in March, Honda’s Prologue was one of many best-selling EVs within the US in 2024. With over 33,000 fashions bought final 12 months, Honda’s electrical SUV was the seventh top-selling EV, forward of the Chevy Equinox EV (28,874).
Electrek’s Take
Provided that the Prologue is among the top-selling EVs, why is Honda slowing manufacturing? Honda is shifting away from GM’s Ultium platform with its upcoming 0 Collection EVs, however that isn’t the rationale but.
The Prologue was as soon as once more one of many top-selling EVs within the US final month. With 3,744 fashions bought, it outsold Ford’s Mustang Mach-E (3,529), the Hyundai IONIQ 5 (2,250), and the Kia EV6 (1,542).
The transfer to gradual output at this level is questionable. As extra particulars unfold, we’ll be taught extra. Test again for extra info on the state of affairs.
