Car maker (NYSE: GM) will shut down its manufacturing operations in Colombia and Ecuador, according to a statement released by the company on Friday. This decision is as part of General Motors’ strategic shift towards the production of next-generation vehicles.

Manufacturing activities will immediately cease at the company’s Colmotores plant in Colombia, while operations will come to a halt at its factory in Ecuador by the end of August.

In Colombia, General Motors is currently seeking approval from the labor ministry to lay off 850 workers, as confirmed by a spokesperson.

General Motors stated that its manufacturing plant in Colombia was operating at only 9% of its capacity, while its Ecuadorean operation was operating at 13% capacity.

Despite the closure of manufacturing operations, General Motors clarified that it has no plans to exit either country. The company intends to maintain its presence through dealerships in both Colombia and Ecuador.