GM has cut a quarter of paints at its Ramos Arizpe production plant in Mexico, where it built the Chevy Equinox EV and Prologue Honda. According to GM, this resolution is due to Honda’s resolution to curb the production of prologue. With sales of its only electric SUV in the U. S. , why is Honda shrinking?
Although GM has just added a third shift in May 2024, the plant has returned to a two -run schedule on January 20.
The move was initially thought to be because its contract to build the Prologue ended, but it turns out that Honda is scaling back.
“This replacement is mainly due to the strategy of our Honda visitor to cut the production volume of the prologue model,” GM said in a statement. The replacement was added to meet the upper export call for fuel engines and Ultium -based electric cars such as Chevy Equinox and Blazer Evs and Honda’s prologue.
With less production of EV Prologue, GM no longer wants additional replacement in Mexico. Thanking Mexico Business News, the corporate is reducing 800 jobs in the plant due to replacements.
GM also said the adjustments were due to “an adjustment in production production of GM vehicles at the site,” so it wasn’t entirely the fault of the prologue. The corporation also builds Chevy Blazers on fuel on site.
Honda didn’t confirm the changes, but a spokesperson (via Automotive News) said, “It is quite normal for our business to make production adjustments during the year in order to meet customer needs and market conditions. We will continue to carefully manage production and inventory for our entire product lineup to meet anticipated demand in 2025.”
One way to read about it is that Honda has concluded an agreement with GM to build a lot of prologues, and had to eliminate them until they are sold to prevent them from accumulating in the inventory.
The prologue therefore sold well, but not as successful as Honda needs it to be or even at a loss. The production deed means that they would possibly not want such competitive discounts to sell them. Or they hide opposite replaced credits that will replace even more margin outside of their EV sales.
After delivering the first models in March, the prologue of Honda one of the best -selling electric sales cars in the United States in 2024. With more than 33,000 models sold last year, the Honda Electric SUV, the most productive seventh, The EV, in front of Chevy Equinox EV (28,874).
Since the prologue is one of the electric vehicles sold, why does Honda slow down production? Honda is moving away from the Ultium GM platform with its next EV in series 0, but that is not yet the reason.
The prologue once supports one of the best -selling electric cars in the United States last month. With 3,744 models sold, Mustang Mach-E Ford (3, five29), the Hyundai Ioniq Five (2,2five0) and the Kia Ev6 (1, five42).
The transition to the slow exit at this point is questionable. As more main points develop, they will inform us more. Review more information about the situation.
Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising