GM halts production on two of its biggest-selling trucks in the US for the second time after CEO made shocking admission

GENERAL Motors has paused production of two top-selling trucks at a plant that’s risking significant tariff-related costs imposed by President Trump.

GM has announced production lines at its Silao, Mexico assembly plant will be halted – with the site already experiencing two separate two-week shutdowns recently.

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GM is pausing production at its Silao, Mexico assembly plant[/caption]

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The mega-site has already experienced two separate two-week shutdowns recently[/caption]

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Two of the mega-brand’s most popular pickup trucks, the Chevrolet Silverado and GMC Sierra, are built at the location[/caption]

According to Reuters, two of the mega-brand’s most popular pickup trucks, the Chevrolet Silverado and GMC Sierra, are built at the location – making the shutdowns particularly unusual considering their high demand.

Car makers often temporarily pause production of popular models, especially to retool assembly lines or manage inventory levels, and GM have insisted that there are no concerns.

Indeed, a spokesperson told the Daily Mail: “Scheduled down weeks at GM Silao are part of a standard operating process focused on optimizing production at our Manufacturing Complex.”

However, with Chevrolet and GMC inventory levels near industry averages, it’s perhaps fair to suggest there isn’t an oversupply issue driving the pauses.

Indeed, broader economic and geopolitical factors may be influencing their actions, with GM one of many manufacturers facing significant costs due to President Trump’s recent 25% automotive tariffs.

To mitigate these expenses, GM is investing in US manufacturing facilities, such as retooling plants in Buffalo and New York.

They are also relocating production of Chevy SUVs from Mexico to the US in Kansas and Kentucky.

However, all of this has a knock on effect, and analysts warn that moving production to the US – where labor costs are higher – could result in increased vehicle prices for consumers.

David Whiston, an automotive analyst at Morningstar, said: “’The challenge for GM will be the higher labor costs.

“The higher costs might need to be passed down to dealers and consumers.”

Last year, GM built 889,072 cars in Mexican factories, while the Silverado sold more than 540,000 units in 2024 and the higher-end Sierra sold over 340,000 examples.

GM’s CEO, Mary Barra, previously said the company expects to pay between $4 billion and $5 billion in tariffs this year.

She also insisted they do not plan to pass those costs on to consumers.

To this end, Whiston claimed the brand will likely remain profitable this year – despite the major investments in their plants and the tariff costs.

This comes as GM faces legal trouble for allegedly selling driver data without consent.

Nebraska Attorney General Mike Hilgers has accused the brand of “emotional blackmail” and privacy concerns related to tracker devices – which allegedly led to unfair fees, such as increased insurance rates.

The lawsuit, filed in Lancaster County District Court, accuses GM and its subsidiary OnStar of harvesting data and selling it off.

These include driving speeds, braking patterns, geolocation and seatbelt usage – all then allegedly sold to third-party companies, including insurance providers.

This, in turn, allegedly resulted in increased insurance rates or even policy cancellations for some drivers.