GM Creatively Increases Equinox Production Due To Growing Demand

by Alex Luft
Mar 28th, 2010

To keep up with growing customer demand, General Motors has announced that it plans to increase production of its Theta-based crossovers, the Chevrolet Equinox and the GMC Terrain.

Currently, the Equinox and Terrain are produced at GM’s CAMI Automotive plant in Ingersoll, Ontario. GM will expand the plant’s body shop capacity to produce the extra Equinox units beyond the current capacity. These assemblies will then be shipped to GM’s Oshawa, Ontario plant for paint and final assembly.

This production plan is somewhat unique: GM is trying to avoid potential production over-capacity situations at CAMI, where increased assembly volumes may cause quality issues (read: production mistakes and inefficiencies). Instead, GM has decided to utilize its assets and facilities in this creative, timely, and – most importantly – cost-effective way.

The increased demand for the crossovers is also resulting in positive outcomes for factory workers. The Oshawa plant will add a third shift to support Equinox production on the Consolidated Line in October and is expected to return approximately 600 workers back to the plant. The story gets even better for CAMI, where all laid off employees will soon be recalled, while additional body shop volume required to support the Equinox will result in the need of about 70 new jobs by August of this year.

The GM Authority Take

This is great news all around. The Equinox and the Terrain are both doing extremely well in the marketplace, with the former registering a 132 percent year-over-year jump in sales in the month of February. The plan also enables CAMI to boost Terrain production volumes, although it seems that this is not what’s being announced at this time.

Hit the jump for galleries of the Equinox and Terrain, as well as for the full presser.

Growing Customer Demand Drives Additional Production of Chevrolet Equinox and GMC Terrain

2010-03-26

Equinox/Terrain combined sales up 100% in Canada and 128% in US over last quarter
Oshawa Plant to add third shift to begin producing Chevrolet Equinox
CAMI Plant further expanding Body Shop capacity and increasing GMC Terrain volume
Plan results in return of almost 700 Canadian jobs

Oshawa, Ontario, March 26, 2010 – In order to meet growing customer demand for hot-selling Chevrolet Equinox and GMC Terrain models, General Motors is implementing a unique plan to add a third shift at its award-winning Oshawa Assembly Plant to support new Equinox production there.

The Equinox and Terrain are currently produced at GM’s CAMI Automotive plant in Ingersoll, Ontario. Under the plan, CAMI’s Body Shop capacity will be expanded to produce extra Chevrolet Equinox units beyond the plant’s existing capacity to paint and assemble them. These Equinox body assemblies will then be shipped to the Oshawa plant for paint and final assembly alongside the current Chevrolet Impala production. The plan also enables CAMI to increase GMC Terrain volumes.

“This plan for CAMI and Oshawa allows us to meet customer demand for hot products while avoiding a potential production over-capacity situation by creatively using our assets and facilities,” said Mark Reuss, president of GM North America. “This innovative approach enables us to ramp up in a timely and cost-effective way and highlights the importance of these plants and communities in our North American plans.”

The third shift to support Equinox production in Oshawa will be added on the Consolidated Line in October and is expected to return approximately 600 employees to the plant. At CAMI, all laid off employees will soon be recalled and the additional body shop volume required to support the Equinox build in Oshawa is expected to result in the need for approximately 70 new jobs, at CAMI by August of this year.
“This is the latest in a series of very positive growth initiatives and new product mandates for our Canadian facilities,” said Kevin Williams, president of GM Canada. “By the end of this year, we expect to recall all laid-off production employees in Oshawa to support the new Equinox, Regal and Camaro convertible production planned there and, at CAMI, we will even be hiring some new workers – truly great news for the employees, dealers, suppliers and communities affected.”

General Motors of Canada (GMCL) is headquartered in Oshawa, Ontario and employs 9,000 people nationwide. GM of Canada manufactures vehicles and powertrains, and markets the full range of Chevrolet, Buick, GMC and Cadillac vehicles and related services through the largest automotive dealer network in the country.