General Motors has shut a pick-up and sport utility vehicle plant in central Mexico due to weak demand from the United States.
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The Silao, Guanajuato plant, one of four major facilities GM operates in Mexico, builds models including the Cadillac Escalade and Chevrolet Silverado and is closed from 20-27 April, a local GM spokeswoman told Reuters.
According to the report, GM was the biggest automaker in Mexico last year but was overtaken by Volkswagen’s local unit in the first quarter of 2009 as US demand for GM’s large vehicles slumped. VW makes more fuel efficient models such as the Beetle, Jetta City (an updated previous-generation Bora/Jetta) and the current Jetta.
The downturn in the US has also forced GM to fire 600 full-time workers as well as announce last week that it would eliminate 340 temporary workers, Reuters said.
GM had previously closed plants in Silao and Toluca during March and also halted production twice in March and April at its Ramos Arizpe plant in the northern state of Coahuila.
Mexican auto production fell almost 41% during the first quarter in the sector’s worst downturn since a mid-1990s financial crisis, the report noted.
