Colmotores, Chevrolet assembler, closed its factory in Colombia yesterday

Colmotores, Chevrolet assembler, closed its factory in Colombia yesterday
Colmotores, Chevrolet assembler, closed its factory in Colombia yesterday

Exactly a decade ago the country was in a similar situation in the automotive industry: the Japanese Mazda closed its assembly operation in Colombia and entered into the import model to serve the local market. It was May 2, 2014.

(Read more: The cars that the Colmotores plant assembled throughout its history)

And yesterday, April 26, the North American General Motors (GM), which produced Chevrolet vehicles in the country, announced the closure of the Colmotores plant, located south of Bogotá, and from which cars, vans, buses and trucks with the bowtie brand. But the story is not exclusive to Colombia, since in several countries vehicle companies have had to close their plants, due to technological changes and low demand.

It was Colombia’s turn, due to the low level of sales and the high cost of maintaining the facilities and its personnel.

Thus, General Motors announced key changes in its operations in Colombia and Ecuador, to ensure the company is best positioned to offer its most advanced vehicles and technologies to customers. In a statement, the company noted: “Manufacturing operations will cease at the Colmotores de Colombia plant and the disassembly process begins today with a reduced team.”

From now on, the company becomes a marketer of vehicles and after-sales service, that is, an importer.

And he argues that the purpose of this is to respond to the challenges of the growing fragmentation of markets, as well as the underutilization of the Colmotores plant which, as it became known yesterday, was operating at just 9% of its installed capacity.

This means that 550 people yesterday received official notification that the plant, where some worked for 40 years, is no longer there. Thus, yesterday the workers were summoned by groups in different places where they were given their settlement and recognition for their efforts during these years.


Colmotors

EL TIEMPO Archive

(Read more: The history of Colmotores: its birth, the crises it experienced and its contribution to the country)

In the communication to employees, the company stated that “In accordance with current regulations, we inform you that, simultaneously with this communication, your employer, General Motors Colmotores SA or the Colmotores SAS Industrial Free Trade Zone (Zoficol) are filing with the Ministry of Labor the corresponding authorizations for collective dismissal of the company. “all of its workers due to total and definitive termination of work.”

And I add: “The decision to definitively cease assembly operations is accompanied by the transformation of the business in Colombia, with the evolution of our vehicle portfolio and the strengthening of after-sales service. We deeply understand the impact this decision has. “We are working to make this change respectful and orderly, honoring our legacy and our history.”

And the costs for the company had been stressed for several years. In fact, as Portafolio learned, since the pandemic a percentage of workers were sent home receiving a part of the salary, but they were never able to return to work because there was nothing to make them do in the plant.

Despite this, Chevrolet’s last big bet began last year, when after investing US$50 million, began production of the Joy model, which it hoped to export to Argentina and Ecuador. Thus, until that moment Colmotores had produced 1.5 million units in Colombia.

Now the cars will continue with their presence in Colombia and the maintenance and purchase and sale will be attended to by specialized workshops, which continue with their normal tasks, since they do not belong to GM.

(See: General Motors closes Colmotores plant in Colombia)


Colmotores Plant

Fernando Ariza

The decline of a giant in the local industry

With a capital of five million pesos, contributed by a group of investors from Antioquia, Caldas, Cundinamarca and the Atlantic coast, and led by businessman Germán Montoya Vélez, on July 27, 1956, the Colombian Automotive Factory was founded in Bogotá. SA, Colmotores.

But it was not until 1962 when production was possible, after the President of the Republic at the time, Alberto Lleras Camargo, attended the inauguration of the plant.

Austin brand vehicles –2.5 and 6 ton trucks– were the first assembled models.

After a crisis and under the name of Chrysler Colmotores, the company operated in the 70s and produced the models Dodge, Simca, Coronet 440 and Dodge trucks. In 1979 General Motors took control of Chrysler and with it Colmotores, and from that time until yesterday, it kept it in production.

(See: This is how they notified Colmotores employees of the plant closure)

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