GM lower a shift at its Ramos Arizpe manufacturing plant in Mexico, the place it builds the Chevy Equinox EV and Honda Prologue. In response to GM, the transfer was on account of Honda’s determination to sluggish 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 Might 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, nevertheless it seems that Honda is scaling again.
“This alteration is principally on account of our buyer Honda’s technique of decreasing the manufacturing quantity of the Prologue mannequin,” GM stated in an announcement. The shift was added to satisfy larger export demand for fuel engines and Ultium-based EVs just like the Chevy Equinox and Blazer EVs and Honda’s Prologue.
With much less Prologue EV output, GM not wants the additional shift in Mexico. In response to Mexico Enterprise Information, the corporate is eliminating 800 jobs on the plant because of the modifications.
GM additionally stated the modifications have been on account of “an adjustment within the mixture of manufacturing of GM automobiles on the website,” so it wasn’t fully the Prologue’s fault. The corporate additionally builds gas-powered Chevy Blazers on the website.
Honda didn’t affirm the modifications, however a spokesperson (by way of Automotive Information) stated, “It’s fairly regular for our enterprise to make manufacturing changes throughout the yr as a way to meet buyer wants and market circumstances. We are going to proceed to fastidiously handle manufacturing and stock for our whole product lineup to satisfy 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 offered final yr, Honda’s electrical SUV was the seventh top-selling EV, forward of the Chevy Equinox EV (28,874).
Electrek’s Take
On condition 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 explanation but.
The Prologue was as soon as once more one of many top-selling EVs within the US final month. With 3,744 fashions offered, it outsold Ford’s Mustang Mach-E (3,529), the Hyundai IONIQ 5 (2,250), and the Kia EV6 (1,542).
The transfer to sluggish output at this level is questionable. As extra particulars unfold, we’ll be taught extra. Examine again for extra data on the scenario.
