GM is cutting a shift at its EV plant in Mexico because of the Honda Prologue

GM cut a shift at its Ramos Arizpe manufacturing plant in Mexico, where it builds the Chevy Equinox EV and Honda Prologue. According to GM, the move was due to Honda’s decision to slow Prologue output. With sales of its sole electric SUV in the US surging, why is Honda cutting back?

GM cuts shift at Mexico EV plant over Prologue output

Although GM just added a third shift in May 2024, the plant returned to a two-shift schedule starting on January 20.

The move was initially thought to be because its contract to build the Prologue ended, but it turns out that Honda is scaling back.

“This change is mainly due to our customer Honda’s strategy of reducing the production volume of the Prologue model,” GM said in a statement. The shift was added to meet higher export demand for gas engines and Ultium-based EVs like the Chevy Equinox and Blazer EVs and Honda’s Prologue.

With less Prologue EV output, GM no longer needs the extra shift in Mexico. According to Mexico Business News, the company is eliminating 800 jobs at the plant due to the changes.

GM also said the changes were due to “an adjustment in the mix of production of GM vehicles at the site,” so it wasn’t entirely the Prologue’s fault. The company also builds gas-powered Chevy Blazers at the site.

Honda didn’t confirm the changes, but a spokesperson (via Automotive News) said, “It is quite normal for our business to make production adjustments during the year in order to meet customer needs and market conditions. We will continue to carefully manage production and inventory for our entire product lineup to meet anticipated demand in 2025.”

After delivering the first models in March, Honda’s Prologue was one of the best-selling EVs in the US in 2024. With over 33,000 models sold last year, Honda’s electric SUV was the seventh top-selling EV, ahead of the Chevy Equinox EV (28,874).

Electrek’s Take

Given that the Prologue is one of the top-selling EVs, why is Honda slowing production? Honda is moving away from GM’s Ultium platform with its upcoming 0 Series EVs, but that isn’t the reason yet.

The Prologue was once again one of the top-selling EVs in the US last month. With 3,744 models sold, it outsold Ford’s Mustang Mach-E (3,529), the Hyundai IONIQ 5 (2,250), and the Kia EV6 (1,542).

The move to slow output at this point is questionable. As more details unfold, we’ll learn more. Check back for more information on the situation.