Restarting pickup production in Mexico, a big boost for GM

2020 Sierra HD Denali sketch by GMC designer Karan Moorjani

GENERAL MOTORS CO. is preparing to resume building vehicles in Mexico as soon as next week following government’s approval for factory restarts, according to people familiar with the matter, positioning the automaker to restock low inventories of its lucrative pickup trucks.

Reopening manufacturing facilities throughout North America is important for the three Detroit-based automakers and foreign brands that produce vehicles in the US. Carmakers rely on Mexico for critical parts and GM and Fiat Chrysler Automobiles NV manufacture trucks there that generate a big chunk of the two companies’ profits.

GM’s three Mexican vehicle-assembly plants, including a full-sized truck factory in Silao in central Mexico, could start up as early as next week in compliance with conditions set out by the Mexican government, said sources, who asked not to be identified because the company hasn’t announced its plans yet.

Restarting pickup production in Mexico would be a big boost for GM. The automaker planned to ramp-up output of its all-new Chevrolet Silverado and GMC Sierra trucks last fall but was forced to halt output during a 40-day strike in the US. Then just as sales momentum and inventory were building early this year, the Covid-19 pandemic hit and forced GM to shut down North American production in the middle of March.

Source: The Business Times

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