GM cut a shift at its Ramos Arizpe manufacturing plant in Mexico, where it builds the Chevy Equinox EV and Honda Prologue. According to GM, the move was due to Honda’s decision to slow Prologue output. With sales of its sole electric SUV in the US surging, why is Honda cutting back?

GM cuts shift at Mexico EV plant over Prologue output

Although GM just added a third shift in May 2024, the plant returned to a two-shift schedule starting on January 20.

The move was initially thought to be because its contract to build the Prologue ended, but it turns out that Honda is scaling back.

“This change is mainly due to our customer Honda’s strategy of reducing the production volume of the Prologue model,” GM said in a statement. The shift was added to meet higher export demand for gas engines and Ultium-based EVs like the Chevy Equinox and Blazer EVs and Honda’s Prologue.

With less Prologue EV output, GM no longer needs the extra shift in Mexico. According to Mexico Business News, the company is eliminating 800 jobs at the plant due to the changes.

GM also said the changes were due to “an adjustment in the mix of production of GM vehicles at the site,” so it wasn’t entirely the Prologue’s fault. The company also builds gas-powered Chevy Blazers at the site.

Honda didn’t confirm the changes, but a spokesperson (via Automotive News) said, “It is quite normal for our business to make production adjustments during the year in order to meet customer needs and market conditions. We will continue to carefully manage production and inventory for our entire product lineup to meet anticipated demand in 2025.”

After delivering the first models in March, Honda’s Prologue was one of the best-selling EVs in the US in 2024. With over 33,000 models sold last year, Honda’s electric SUV was the seventh top-selling EV, ahead of the Chevy Equinox EV (28,874).

Electrek’s Take

Given that the Prologue is one of the top-selling EVs, why is Honda slowing production? Honda is moving away from GM’s Ultium platform with its upcoming 0 Series EVs, but that isn’t the reason yet.

The Prologue was once again one of the top-selling EVs in the US last month. With 3,744 models sold, it outsold Ford’s Mustang Mach-E (3,529), the Hyundai IONIQ 5 (2,250), and the Kia EV6 (1,542).

The move to slow output at this point is questionable. As more details unfold, we’ll learn more. Check back for more information on the situation.

Several automakers, including Honda, Hyundai, Ford, and Kia, reported higher EV sales in the US in January. Here’s a look at some of the top-selling EV models (outside of Tesla) last month.

EV sales in the US by model in January 2025

With nearly 133,000 electric vehicles sold in December, EVs accounted for 8.8% of new car sales in the US, a new record.

According to Cox Automotive’s Kelley Blue Book, the strong end-of-year sales helped push total EV sales to 1.3 million in 2024, up 7.3% from 2024.

With Trump reportedly planning to end electric vehicle incentives, like the $7,500 federal tax credit, demand is expected to pick up as buyers look to lock in the savings before they disappear.

Several automakers reported US sales numbers for January, giving us a better idea of how the EV market is playing out.

Ford sold 5,666 EVs last month, up 21% and a new January record. The Mustang Mach-E had its best January with 3,529 models sold, up 173% from January 2024. It was the second best-selling electric SUV behind Tesla’s Model Y.

Despite higher demand for the Mach-E, Ford F-150 Lightning sales slipped 15% to 1,907 units. Sales of Ford’s E-Transit electric van also fell 80%, with only 230 models sold last month.

Kia sold 1,542 EV6 models sold last month. However, sales of its three-row EV9 were down slightly (1,232 vs 1,408 in January 2023).

Sister company Hyundai notched double-digit sales growth with its popular EV models. As the upgraded 2025 model rolled out, Hyundai IONIQ 5 sales climbed 54%, with 2,250 units sold in January. Although IONIQ 6 sales were up 15% year over year (YOY), only 871 models were sold.

The biggest surprise, again, was Honda. Honda’s electric Prologue continued to take the US by storm with another 3,744 models sold last month.

After delivering the first models last March, the Prologue was the seventh best-selling EV in the US in 2024. Honda sold over 33,000 Prologue’s in the US in 2024, beating out the Chevy Equinox EV (28,874) and Rivian R1S (26,934).

GM doesn’t report monthly US sales numbers, so we’ll have to wait until April for quarterly sales for a comparison. Several others still have yet to report January US sales. Check back for the latest numbers.

Tesla doesn’t report monthly US sales numbers, but earlier today Electrek reported that the EV maker saw its first annual drop in sales in California last year.

Tesla sales are dropping like a rock in Europe based on early sales numbers coming for January 2025. Many are linking this to dissatisfaction with CEO Elon Musk’s meddling in European politics.

While there’s undoubtedly some of that going on, it’s not the only factor.

Several European countries release car sale numbers on a monthly basis.

When we compare Tesla’s performance to the same period last year, the American automaker is down in every single market, and it has delivered about half as many vehicles as last year: