General Motors (GM) officially declared that it will shut down its assembly operations in both Colombia and Ecuador.
This decision shifts focus to national vehicle marketing and after-sales services. Today, GM starts winding down Colombia’s Colmotores plant, operational since 1956.
The OBB plant in Ecuador will follow, ending activities by August 2024. Despite these closures, GM reaffirms its commitment to South America.
The company will sustain its Chevrolet brand presence, supported by a widespread dealership and Onstar services network.
This approach addresses evolving customer needs in these regions. The change reflects GM’s strategy to tackle market fragmentation and plant underutilization.
Currently, Colmotores and OBB operate at only 9% and 13% capacity, necessitating a strategic shift.
Shilpan Amin, President of GM International, stresses these adjustments are crucial for offering advanced vehicles and pursuing a zero-emissions future.
Santiago Chamorro, GM South America’s CEO, supports focusing on customer-centric strategies for future competitiveness.
GM acknowledges the closures’ impact on employees, promising a supportive and respectful transition.
This commitment includes legal compliance and comprehensive career counseling.
In this transition, GM boasts strong financial health, with last year’s earnings before interest and taxes (EBIT) reaching $12.4 billion.
This year, projections rise to $14.5 billion. Driven by a 15% annual growth rate, GM plans a $35 billion investment to transition to fully electric vehicles, paving a sustainable path forward.