BOGOTA (Reuters) -U.S. automotive maker General Motors (NYSE:) will shut its manufacturing operations in Colombia and Ecuador, the corporate mentioned in a press release on Friday, as a part of its shift in the direction of producing next-generation automobiles.
Manufacturing will stop at firm’s Colmotores plant in Colombia from Friday, it mentioned, whereas operations will halt at its manufacturing facility in Ecuador on the finish of August.
In Colombia, the corporate is looking for permission from the labor ministry to put off 850 staff, a spokesperson mentioned.
Its Colombia manufacturing plant was working at 9% capability, General Motors mentioned, whereas its Ecuadorean operation was at 13% capability.
Colombia’s labor ministry will examine the manufacturing plant in a sequence of visits, it mentioned in a press release, as a part of its position in defending staff’ rights.
The plant’s closure comes amid a 14-year low of gross sales of latest automobiles in 2023 versus 2022 in Colombia, in line with a report launched by two business teams in January.
Despite closing its manufacturing operations, General Motors is not going to exit both nation, the corporate mentioned, however will keep dealerships in each Colombia and Ecuador.