General Motors Co. (NYSE:GM) will continue to produce its Ultium architecture-based EVs like the Chevrolet Equinox at its production facility in Ramos Arizpe, Mexico.
What Happened: GM's director of EV operations in Mexico, Adrián Enciso, has shared that the company will continue producing EVs in Mexico, owing to the success of the vehicles produced at the facility, he said to the Mexican Spanish-language newspaper Milenio on Monday.
"At this time, GM has no plans to halt or relocate production of any of our EV models made in Mexico," Enciso said. He also hinted at the possibility of GM building other models like the Chevrolet Spark EV at the facility in the future.
Currently, the Ramos Arizpe facility produces the Chevrolet Blazer EV and the Equinox EV. The facility also produces the Cadillac Optiq, as well as the Honda Motor Co., Ltd (NYSE:HMC) Prologue, which is based on the same platform as the Equinox EV.
Why It Matters: The news comes amid uncertainty around Donald Trump's auto tariffs, which have caused a lot of uncertainty in the U.S. auto sector. Trump's tariffs have impacted GM, which recently was at risk of receiving a negative rating from ratings agency S&P.
According to experts, the tariffs could cost the auto industry over $108 billion, with Detroit-based manufacturers like GM, Ford Motor Co. (NYSE:F), and Stellantis NV (NYSE:STLA) nearly $42 billion.
The administration has been on the receiving end of criticism from Michigan auto groups for the tariffs. The groups say that Trump's tariffs have resulted in uncertainty for employees as well as supply chains.
However, the Trump administration has indicated it is willing to provide exemptions to some U.S. automakers as they navigate the new tariff environment and make adjustments to the supply chain.
Price Action: GM has experienced a 13.59% YTD decline in value, currently trading for $44.39, according to Benzinga Pro data.
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