Biggest US carmaker pauses production for best-selling trucks
The Silao plant is just one of several that build the full-size pickup trucks. They're also assembled in Indiana, Michigan, and Ontario, Canada. It's not unusual for automakers to temporarily pause production of popular models, especially to retool assembly lines or manage inventory levels. 'Scheduled down weeks at GM Silao are part of a standard operating process focused on optimizing production at our Manufacturing Complex,' the company told DailyMail.com.
But a second two-week shutdown is raising eyebrows, particularly for the Silverado, which sold more than 540,000 units in 2024 – second only to Ford's F-Series pickups. The Sierra is no sales slouch either. The higher-end truck, that comes with more exterior chrome, more luxury interior finishes, and a mechanically similar power center, sold over 340,000 copies last year.
Neither car has a reported inventory glut. They also don't have any major reported changes coming to the design that would necessitate a production pause. As of May, Chevrolet had a 65-day supply of vehicles on dealer lots, just under the 70-day industry average. GMC's supply was slightly higher at 77 days. But broader geopolitical and economic factors might be playing into GM's decision, analysts warn.
GM has said it is reevaluating how it will build some of its cars in the face of President Donald Trump's 25 percent automotive tariffs . Mary Barra (pictured), the company's top boss, has said the company expects to pay between $4 billion and $5 billion in tariffs this year. She said the automaker doesn't have plans to pass those costs on to consumers. To reduce those costs, GM is investing heavily in stateside manufacturing.
The company is spending $888 million to retool an engine plant in Buffalo, New York, for a new line of V8 engines for large trucks and SUVs. GM is also spending about $4 billion to move production of its top-selling Chevy SUVs, the Equinox and Blazer, from Mexico to plants in Kansas and Kentucky. Last year, GM built 889,072 cars in Mexican factories.
Over time, independent experts warned DailyMail.com that the move to the US could show up on the popular automaker's sticker prices. 'The challenge for GM will be the higher labor costs,' David Whiston, an automotive analyst at Morningstar, previously told DailyMail.com. 'The higher costs might need to be passed down to dealers and consumers.'
Still Whiston said the company will likely remain profitable this year, despite the major investments and tariff costs. The moves also come as GM doubles down on its EV consumer fleet. In the US, the company has axed two underperforming Cadillac SUVs from production. The company plans on transforming both plants into battery assembly lines, especially for its upcoming re-release of the Chevy Bolt.
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