The General Motors plant in Ecuador (GM OBB) currently assembles models like the D-Max truck, Ecuador’s top-selling vehicle.

General Motors (GM) announced on April 26, 2024, its decision to discontinue Chevrolet vehicle assembly in Ecuador, effective August of this year. From September onward, all Chevrolet models will be imported into Ecuador from countries including Brazil, the United States, and China, depending on the model.

The company’s assembly operations in Ecuador, which include the popular Chevrolet D-Max truck, constitute a significant portion of the country’s automotive market, with Chevrolet holding a 19% market share in the first quarter of 2024, according to the Chamber of the Automotive Industry of Ecuador (Cinae).

In addition to the closure of the Ecuador plant, Chevrolet is also ceasing production at its Colmotores plant in Colombia, effective April 26.

According to a company statement, “Manufacturing operations will cease at the Colmotores de Colombia plant, with the disassembly process commencing today (April 26) with a reduced team. At the OBB plant in Ecuador, manufacturing will cease by the end of August 2024.”

The company further elaborated that in both Colombia and Ecuador, there will be a transition to a model where national vehicle marketing and after-sales service companies will collaborate with the Chevrolet brand.

The move is part of General Motors’ strategy to support the launch of new generation vehicles and drive the transformation of the industry toward a zero-emissions future, as stated by Shilpan Amin, president of GM International.

The company’s decision is also aimed at addressing challenges such as market fragmentation and underutilization of manufacturing plants in Colombia and Ecuador, with the Colmotores plant operating at only 9% of its installed capacity and the GM OBB plant at 13%.

Regarding the impact on employees, General Motors expressed understanding of the situation and pledged to support affected individuals during their transition. Layoffs are expected, potentially affecting up to 800 employees at the Colmotores plant in Bogotá, the sole vehicle manufacturing facility in Colombia.

The Colombian Ministry of Labor has assured protection of workers’ rights and announced plans for labor inspections to ensure compliance with legal standards.

In Quito, GM OBB employs approximately 300 people. Despite the changes, Chevrolet remains the leading brand in Ecuador, with sales supported by six dealerships and 46 service points.

General Motors vows to facilitate an orderly transition for departing workers, ensuring strict adherence to legal provisions and existing collective contracts, as stated by Santiago Chamorro, president and general director of GM South America. Additionally, the company will provide comprehensive support and guidance for the future employment of affected individuals.