GM Cuts 800 Jobs in Coahuila After Honda Slows EV Production

General Motors (GM) has eliminated 800 jobs at its Ramos Arizpe plant in Coahuila due to operational adjustments. On Jan. 20, 2025, the plant reduced its shifts from three to two, reverting to the previous work schedule that existed before May 2024. This change follows a shift in production strategy by GM’s client, Honda, which scaled back the volume of its Honda Prologue electric SUV.

Initially, it was believed that the layoffs were a result of GM’s contract with Honda ending, but GM clarified that the decision was driven by Honda’s revised production plans. "With the goal of increasing operational efficiency at General Motors Ramos Arizpe, starting on January 20, the Assembly Plant returned to a two-shift operation, as it was before May 2024. This change is mainly due to our customer Honda’s strategy of reducing the production volume of the Prologue model," GM stated.

GM had added a third shift in May 2024 to accommodate growing demand for diesel and gasoline engines, as well as electric vehicle platforms for export to the United States. However, with the changes in Honda’s production requirements, the third shift became unnecessary, leading to the layoffs.

"It is important to highlight that GM’s contract with Honda continues, and as previously mentioned, we are only adjusting production volumes," the company clarified.

The layoffs have primarily affected workers from the eliminated third shift. In response, the Coahuila Ministry of Labor announced a job fair for displaced employees on Jan. 30 to assist them in finding new employment. Local brokers noted that, with the ongoing activity in the automotive sector, it should be relatively easy for former GM employees to secure new jobs, especially with Stellantis planning to expand operations in Derramadero, Coahuila.

"GM Ramos Arizpe is proud of its role in Mexico’s automotive industry. We remain committed to delivering high-quality vehicles for our customers," the company affirmed.