GM Faces Logistic Hurdles, Chinese Competition
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GM Faces Logistic Hurdles, Chinese Competition

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Reneé Lerma By Reneé Lerma | Journalist & Industry Analyst - Mon, 09/25/2023 - 10:35

GM is grappling with production disruptions and export-related challenges due to logistical bottlenecks at Mexican customs, while facing intensifying competition posed by Chinese automakers, resulting in a saturation of the logistics chain.

One of the primary factors behind these disruptions is the limited availability of transportation options, encompassing rail, road and maritime services in Mexico, which have struggled to keep up with the surging demand for these services. Consequently, GM has halted part of its production and reduced vehicle exports. 

Despite holding a prominent position in Mexico's automotive landscape, GM experienced a 8.8% decline in vehicle production during the initial eight months of 2023 in comparison to the previous year. 

In San Luis Potosi, a backlog of over 20,000 vehicles, stemming from customs disputes and escalating export costs, has forced GM, along with BMW, to halt production. 

Intensified competition from Chinese automakers in Mexico has exacerbated the demand for logistics services, resulting in production stoppages when storage facilities become overwhelmed.

GM, however, is charting a path toward recovery. The company is shifting its focus to electric vehicles (EVs) in response to evolving market dynamics. The production of the Chevrolet Blazer EV and the upcoming Equinox 100% electric model symbolize this transition. 

Photo by:   Chevrolet

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