The General Motors Ecuador plant (GM OBB) assembles vehicles such as the D-Max truck, which is the best-selling model in Ecuador.
General Motors (GM) reported this 26 April 2024 what let’s stop assembling cars your brand Chevrolet in Ecuadorsince August of this year.
From September all cars of the brand they will arrive imported to Ecuador, according to the model, from countries such as Brazil, the USA and China.
Negotiations on a trade agreement between Ecuador and Canada will begin on April 29.
The company assembles in Ecuador such models as Chevrolet D-Max truckWhich best selling car in the country. Chevrolet accounted for 19% of market sales in the first quarter of 2024, according to the Chamber of the Automotive Industry of Ecuador (Cinae).
Except plant closure in Ecuadorand Chevrolet too production ceases at its Colmotores plant in Colombia on April 26.
“Production operations at the Colmotores plant in Colombia will cease and the dismantling process will begin today (April 26) with a reduced team. The OBB plant in Ecuador will cease production at the end of August 2024,” the company said in a statement.
Both Colombia and Ecuador will transition to a model in which National companies from automotive marketing and after-sales service They will work with the Chevrolet brand, the company said.
With this measure, General Motors will achieve “car starting support new generation, including world class portfolio“.
“The actions we are announcing are fundamental to ensuring that we are in a better position offer our customers vehicles and the most advanced technologiesand promote industry transformation in Colombia and Ecuador towards a zero-emissions future,” said Shilpan Amin, President of GM International.
The company said this transformation is aimed at solving the challenges of a growing market fragmentationas well as underutilization of Kolmotorov and GM OBB (General Motors in Ecuador). Today the Kolmotores plant operates at 9% of installed capacity and capacity GM OBB at 13%.
What will happen to the employees?
In a statement, the company also said it understands the impact this decision will have on people who will lose their jobsSo will support you during your transition.
This will mean layoffs that could reach 800 people at the Kolmotores plantlocated in Bogota, the only plant where cars are produced in Colombia, according to trade unions, the EFE news agency reported.
For its part, Colombia’s Ministry of Labor said it will guarantee ” protection of labor rights workers of the car assembly plant” and announced that it would hold checking the work.
“I have directed the Department of Inspection, Supervision and Control to conduct a series of visits to the plant to inspect working conditions and ensure that they meet the standards required by law,” explained Labor Secretary Gloria Ines. .
At GM OBB, located in Quito, The company employs about 300 people. According to Cinae, Chevrolet is a brand with more sales in Ecuador.
As of first quarter 2024 Chevrolet 6041 cars sold. The company in Ecuador sells the brand through six dealers who They have 46 service points.
The company promises an orderly and respectful transition for workers who will leave factories in the two countries. “Ensuring strict agreement belonging provisions of lawliabilities acquired in our current collective agreement“Said Santiago Chamorro, President and CEO of GM South America.
In addition, Chamorro stated that he would provide extensive and robust advisory program and support for the future work of these people.