In the middle of the SUV segment at its peak, GM decided to cut off one of its best-selling models.
Specifically, General Motors (GM) will close the CAMI assembly plant in Ingersoll, Ontario, Canada for a week, dated from 30/9, and reduce one of the three shifts in the company’s San Luis Potosi plant in Mexico from March 12/8.
What do these two plants have in common? They all produce Chevrolet Equinox, one of GM’s best-selling models. The factory in Canada provides the domestic market and the American market, while the Mexican factory produces Equinox cars for the domestic market and Latin American markets. In addition, the San Luis Potosi plant also assembles the Chevrolet Trax and GMC Terrain models.
“In accordance with the strategy of adjusting production according to market demand, on 1/8, the employees of the CAMI plant are notified of the suspension of production a week. There are currently no further production stops, “GM spokesman Canada – Mrs. Jacqueline Thomson shared.
The company does not exclude the possibility of further production pauses during the period from now until the end of the year. With the factory in Mexico, GM decided to reduce a production CA due to the different forecasts of the export market.
These are just small adjustments in production operations, but GM’s decision to cut the Chevrolet Equinox sample production in both Canada and Mexico came at the right time to consume new vehicles in the area of the American market to decline and could be a signal to The degeneration of crossover and SUV segments. Basically, GM knows the need for these vehicles is decreasing so start preparing.
Chevrolet Equinox is still selling in the US, with 11% increase in 174,157 vehicles in the first 6 months of this year. However, in Canada, sales have dropped 17% to only 9,687 vehicles in the same period.
It is unclear whether the SUV fever is coming through, but the growth rate in recent years is too hard to visualize this segment to continue to grow for a long time.