BOGOTÁ, Colombia: US carmaker General Motors (GM) Friday announced it would close manufacturing plants in Colombia and Ecuador with dismantling of the Colombia plant starting without delay.
However, the carmaker promised support to employees, hundreds of which will lose their jobs, according to unions.
Dismantling of the Colombia plant would start immediately, while in Ecuador manufacturing activity will stop toward the end of August, said the carmaker in a press statement.
Operations in both countries will transition “to a national merchandising model to support the launch of next-generation vehicles,” the statement added.
According to a Colombian labour union, 600 people will find themselves without work. According to a 2022 data, in Ecuador, GM provided some 450 direct jobs and over 6,700 indirect ones.
GM said the plants had been underutilized, adding it would continue to be in the two countries through the Chevrolet brand.
On Tuesday, GM reported higher profits thanks to continued strength in North America that balanced a loss in its China business, enabling the company to lift its forecast.
