General Motors Mexico Lays Off 1,900 Workers Amid Declining EV Demand in the US
Ramos Arizpe, Coahuila, Mexico – general Motors de México (GMM) recently announced the layoff of 1,900 employees at its manufacturing plant in Ramos Arizpe, Coahuila. The decision stems from a reduction in the plant’s operations, specifically the elimination of a second production shift, due too a notable decline in demand for electric vehicles (EVs) in the United states.
The layoffs come shortly after GMM announced a planned $1 billion investment over two years (2026-2027) aimed at bolstering vehicle production for the Mexican domestic market. Though, the company is simultaneously undertaking operational restructuring to align production capacity with current market realities, particularly the softening demand for EVs.
In a statement released to EL WORLDWIDE, General Motors expressed gratitude for the contributions of the affected employees, assuring them they will receive severance packages in accordance with Mexican Federal Labor Law. The company emphasized the necessity of the decision to maintain operational efficiency and competitiveness. “We remain committed to contributing to economic growth and generating opportunities for local communities,” the statement read, reiterating the company’s long-term commitment to Mexico.
Data from the Mexican Automotive Industry Association (AMIA) reveals a notable shift in production figures for key EV models. Production of the electric Blazer decreased from 33,765 units in 2024 to 16,826 units in 2025. Conversely, production of the electric Equinox saw a modest increase, rising from 61,002 units in 2024 to 75,912 units in 2025.
Industry analysts attribute the decline in US EV sales to the removal of government incentives for green vehicle purchases. This policy change has demonstrably impacted consumer demand, forcing manufacturers like General Motors to reassess their production strategies.
The decision to eliminate the second shift at the Ramos Arizpe plant is a direct response to these market conditions, aligning production with the current demand, particularly within the EV segment.
Tereso Medina, a leader with the Confederation of Mexican Workers (CTM) in Coahuila, warned that the impact of the GM layoffs could extend throughout the supply chain. He estimates that for every worker laid off at the plant, an additional three jobs could be at risk within the network of suppliers. This potential ripple effect underscores the broader economic implications of the downturn in EV demand and the subsequent adjustments within the automotive industry.
