GM Halts Production at Mexican Plant Over Trump Tariff Pressure: Silverado & Sierra Supply Threatened

General Motors (GM) is allegedly halting operations at its Silao facility in Mexico, where it produces its top-selling Chevrolet Silverado and GMC Sierra trucks, for multiple weeks, according to reports of regular manufacturing changes.

The decision occurs during ongoing supply chain challenges connected to new tariffs imposed by former U.S. President Donald Trump, and comes after a significant safety recall earlier this month.

The Silao production facility closed for the first two weeks of July and is anticipated to stop operations once more during the periods of August 4 and 11, according to Reuters. reported , according to individuals who are aware of the situation.

While GM Confirmed planned system outage, but it did not reveal specific dates, referring to the closures as part of a regular operational efficiency initiative.

The Silverado and Sierra, which are General Motors' best-selling models in the U.S., are also manufactured in Fort Wayne, Flint, and Ontario.

Although brief interruptions are common during model transitions or upkeep, extended periods of shutdown lasting several weeks are uncommon in facilities producing popular models.

General Motors reported selling 278,599 Silverados and 166,409 Sierras during the first six months of 2025, representing an increase of 2% and 12% respectively.

The logistics network continues to face challenges because of Trump's taxes on incoming cars and components, further worsened by China's limitations on exporting essential rare-earth elements used in vehicle technology.

Meanwhile, GM recalled more than 62,000 Silverado medium-duty trucks were recalled in the U.S. during June because of an issue with the brake sensor that could lead to a fire.

The issue arose due to a vendor employing the wrong chemical in a rubber part, which might degrade with time and lead to brake fluid leaking into the electrical cable assembly, potentially causing a malfunction.

To ensure safety, drivers were recommended to keep their vehicles parked outdoors until necessary fixes were completed.

General Motors stated it would address the issue at no cost, substituting the part with an updated design that won't experience leakage.

The car manufacturer stated that no injuries or accidents were documented.

A total of 10,319 mid-sized trucks were recalled from those sold in 2024, which formed part of the overall 560,264 Silverados distributed throughout the U.S. during that same period.

On [date], retail sentiment toward GM was 'negative' with 'minimal' message activity.

General Motors' shares have increased by 3.9% this year in 2025.

See also: Elon Musk Expresses Support for TeslaBacking xAI — However, Hands Over Decision-Making to Directors and Investors: 'It’s Not My Call'

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