The Chevrolet Equinox and GMC Terrain are bread-and-butter products for General Motors, continuing to be in high demand, so much so that the company is reported to be re-evaluating where it will produce them in the future.
Currently, the GM Theta crossovers are built at the GM Canada CAMI plant in Ingersoll, Ontario, where the facility is producing at capacity, along with overflow production facilitated by the Oshawa, Ontario assembly plant. But demand for the vehicles is at the point that spillover production is even being sent to GM’s facility in Spring Hill, Tennessee, while the company is mulling shifting the entire production from CAMI to either Tennessee or perhaps even Mexico. That being the case, CAW workers have elected for early negotiations to begin for a new labor contract at the CAMI plant, all in an effort to keep Equinox and Terrain production at the plant. GM originally approached the CAW about early negotiations in January.
While the future of Equinox and Terrain production remains up in the air, General Motors may have to find dedicated replacements for the vehicles to produce in Canada, if the decision is to move production southward. This is due to the fact that the company must adhere to keeping 16 percent of its North American vehicle production in Canada, as part of an agreement stemming from receiving C$10.8 billion from the Canadian government.
The next-generation Equinox and Terrain are expected to become smaller in size and ride on GM’s new D2XX vehicle architecture, which itself is a successor to the Delta platform current utilized by the Chevrolet Cruze, Opel/Vauxhall Astra, and the Buick Verano/Excelle, among others.
Comments
Its all about cost of production. Canada needs to prove itself the low cost producer in competition with TN and Mexico, in the same way Vauxhall’s factory was pushed to prove itself against German plants.
This competition is good for the company.
Ease the problem by making the TRAX available in US! Where are they manufactured?
The Trax is manufactured in Mexico.
I looked at one last week and it’s a very nice vehicle!!
Rocky pay attention and learn something , it is all about gov . subsidies / fundings Right now the Canada federal gov. is looking to renew a 250 million renovation fund for the auto industry . Already government handouts to GM and Chrysler top 14 billion dollars ! Ford is looking for 400 million to retool an assembly plant in Oakville Ont . This funding request , or perhaps you may be calling it blackmail , might go something like this , ” gosh , folks we may have to move the plant back to the good old USA where costs are lower ” , or say whatever other reason is more plausible . Or in the States , it might go something like ” well sales have been sliding these past years and we may have to have the vehicle made in Korea “…oops , there goes thousands of jobs . This is what its all about jobs ! Canada is only a bit player here , the biggies with the handouts are the USA , China , Japan , Korea and Brazil . In the USA , forget the federal government , the local governments of state , county and cities are now the bankers for of US manufacturers . It works out to 80 billion dollars yr m/l to retain/attract companies . The Big three auto ones get 25 billion of it . What did Ford make net last year , over 20 billion m/l ?? GM made what , 8 billion thereabouts ??, and they continue to play what some might call a GAME . Our government , your states , counties , cities need employment to get people to work , paying taxes , growing the economy , so the manufactures might say ” Well boys the answer is right here , we will build a plant in your fine city and think of the jobs/ prosperity it will bring ” Oh yes , by the way you will be required to help us out here , we’ll spend about a billion in this fine city and we’d like 400 million from your fine well to do citizens of the state of……insert yours if you like . Two things , by these prospering auto companies taking a huge chunk of you’re and my country’s financial resources meant to retain and attract industry , it leaves a lot less available to many deserving industries who seriously need it , with nothing left in the kitty for many who can’t get a penny . Lastly , there is no guarantee/ committment that the big three auto recipients plants will stay . They could close up a billion dollar plant just like that . There are could be many stories to tell of these and other companies who have taken huge sums from local and federal governments and have absolutely nothing to show for it !! This is our money , the peoples money , any company that gets our aid must make an iron clad committment to the people . This would match what we the citizens must agree to if we go to the bank for a car loan or a house loan and you don’t pay , what happens to us real fast ?? This potential throwing out job bait to get money and avoiding committment must stop NOW. Much of this comment comes from one of our countries largest newspaper , The Globe and Mail , the rest from my surmising and make no claims to its veracity . JC