GM of Mexico reported that the Chevrolet Onix will no longer be produced in the North American country. Priority will be given to the Chevrolet Equinox and GMC Terrain.
Through an official statement, the Mexican subsidiary of General Motors (GM) announced the end of production of the Chevrolet Onix at its industrial facilities in San Luis Potosí, starting this May.
This car has been produced there since the end of 2019, only in the sedan body. From this place, the units are distributed to the markets of Central America and the South American Pacific nations, including Colombia.
Now, the Chevrolet Onix will arrive in Mexico imported from the SAIC-GM plant located in Yantai, China. It is the same one that produces the Chevrolet Aveo (third generation Sail), a model that today heads the brand’s sales listings in the Aztec country market.
Chevrolet Onix, end of production in Mexico: arguments
The main reason that justifies this movement is the increase in the production of compact SUVs. Chevrolet Equinox and GMC Terrain, in high demand in North America. It is expected to generate 1,300 new jobs, increasing its workforce from 5,400 to 6,700 workers this year.
The same statement highlights that GM China is a very important source of production for the firm in Mexico. The experience of importing cars from this nation has been positive, guaranteeing the quality of its units by applying the GM Global Manufacturing System.
In addition, the reception of the Chevrolet Onix in Mexico has not been as expected. In 2020, 25,283 units were sold there, which in 2021 fell to 12,362 units, taking into account that there was no production for several months. Same as in Brazil, due to the shortage of microchips.
In contrast, its main rival, the Nissan Versa, sold a total of 69,775 units in Mexico last year.
What will happen in Colombia?
Although the path to follow in the countries that supplied the Chevrolet Onix from Mexico is not yet known, it is clear that Colombia could not bring this car from China. It would have to pay a 35% tariff which, added to the sharp depreciation of the Colombian peso, would prevent it from offering an attractive price.
Most likely, like the Onix hatchback, it will now come from the Gravataí plant in Brazil. With that country no tariff is paid, but there is an established quota of 50,000 units. Last year we were close to that limit, with 46,336 cars. Once that line is crossed, a fee of 16.1% must be paid.
Another option, less likely, is that they consider their assembly or production in Colmotores, taking advantage of the output of the Spark and Beat.
Without taking into account the months in which there was no inventory, the Chevrolet Onix sold an average of 895 units per month last year, a level that would justify the investment in the Bogota factory, in addition to exports to Ecuador. We will investigate about it.
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Texts: Fabián Rojas Castañeda.
Editing and General Direction: Óscar Julián Restrepo Mantilla.