Ramos Arzipe is house to the manufacturing of a number of key electrical and inner combustion engine autos, together with the Honda Prologue, Cadillac Optiq, Chevrolet Blazer EV, Equinox, and ICE Blazer. Though the manufacturing unit beforehand operated three shifts, it’s now scaling again to 2 shifts. Honda has indicated that this alteration is being made to raised align with the market demand for the Prologue.
Mexico has emerged as a big hub for electrical automobile (EV) manufacturing, notably for Normal Motors, Honda, and Acura. The Ramos Arzipe plant performs a vital function in producing extremely sought-after fashions. Nevertheless, regardless of the success of autos just like the Honda Prologue and Chevrolet Blazer EV, the manufacturing unit is decreasing its workforce by eliminating one manufacturing shift at Honda’s request.
The Ramos Arzipe facility is important for GM’s EV lineup, producing fashions such because the Blazer EV, Equinox EV, the upcoming Cadillac Optiq, and the Honda Prologue, along with the gas-powered Chevrolet Blazer. After a short growth to 3 shifts eight months in the past, GM is reverting to 2 shifts, as reported by Automotive Information. This transformation will have an effect on roughly 800 workers, at the same time as manufacturing had ramped as much as 32,500 items per thirty days, up from 25,000 earlier than the third shift was added.
This choice raises questions, particularly after GM’s distinctive EV gross sales in 2024, with the Prologue turning into a standout success as GM’s best-selling EV. The shift discount, nevertheless, is reportedly at Honda’s behest, geared toward aligning manufacturing with demand.
The Prologue had a sturdy first yr, with over 46,000 items manufactured on the Ramos Arzipe plant and about 33,000 reaching prospects within the U.S. Nevertheless, this success is nuanced. When requested if the shift discount was influenced by the fluctuating 25% tariff on Mexican imports, representatives from each Honda and GM said it was not the case. A Honda spokesperson defined that adjusting manufacturing ranges to match buyer wants and market circumstances is commonplace follow inside the trade. They pledged to handle the manufacturing and stock of their whole lineup to satisfy anticipated demand for 2025.
Regardless of the present enthusiasm amongst Honda sellers for EVs, proof suggests a extra complicated market scenario. Knowledge from CarEdge signifies that, though the Prologue is performing effectively, there could also be an oversupply of items ready on dealership heaps. The common market-day provide for EVs is usually increased than common, with some fashions, just like the Subaru Solterra, having a 96-day provide. The Prologue doesn’t function among the many fastest-selling EVs, elevating questions on whether or not its gross sales are sturdy or if incentives are primarily driving the transactions. The common market-day provide for all Honda fashions, together with the Prologue, is round 69 days.
In abstract, whereas the Prologue’s gross sales are first rate and contribute to Honda’s growth within the EV market, there’s a risk of an oversaturation on seller heaps, resulting in a disconnect between provide and demand. Moreover, uncertainties surrounding EV tax credit could complicate the outlook.
Nonetheless, Honda just isn’t withdrawing from the EV market. The Prologue will stay Honda’s sole electrical automobile till the corporate’s new EV hub turns into operational later this yr. By early 2026, no less than two Honda EV fashions are anticipated to be obtainable on the roads. Nevertheless, it seems that Honda could also be ready for market circumstances to stabilize earlier than figuring out the suitable variety of Prologues to distribute to sellers.
For inquiries, contact the writer at Kevin.Williams@InsideEVs.com.
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