General Motors (GM), the world's second-largest automaker after Toyota, communicated in a company statement this week its plans to stop production for several days at three of its four plants in Mexico.
The temporary stoppages will occur during March and April to decrease output to better match the reduced demand for automobiles seen in the Mexican and US markets.
Production will be halted for five days in March at GM's plants in the central Mexico cities of Silao and Toluca. The company's plant in the Northern city of Ramon Arizpe, which produces several of GM's sport utility vehicle lines, will be the most affected as production will be suspended for six days in March and the entire week of Easter in April. Additionally, GM also announced it will lay off of more than 600 employees at the Ramon Arizpe facility over the next month.
GM director of manufacturing Hector De Hoyos said during a conference call that the stoppages at the plants in Silao and Ramon Arizpe will result in output reductions of between 800 and 900 cars per day at each plant. De Hoyos declined to give production numbers for the Toluca plant.
As a whole, Mexico's car industry has been severely negatively impacted by the global economic downturn -- Mexican car exports fell 57 percent in January while national sales decreased 28 percent. Total car production declined 51 percent.