Offering customers a wide-range of options is typically seen as a good thing, but at a certain point, the added complexity and costs outweigh the benefits. That seems to be the case for the future Chevrolet Equinox and GMC Terrain, which will cut available build combinations from more than 200 down to 100.
According to GM President Mark Reuss, who spoke at the recent GM Capital Markets Day event, GM managed to eliminate 12 percent of parts used in its plants, or roughly 3,500 parts total, in 2019. This year, the automaker hopes to eliminate a further 25 percent of the parts used in its plants. The parts streamlining efforts will be accomplished by eliminating things like trim levels, paint options, engine and transmission options, and by bundling sourcing options, including those for the future Chevrolet Equinox and GMC Terrain.
GM President Mark Reuss
“For example, the next-gen compact crossovers, Equinox and Terrain, will have more reused and shared parts,” Reuss explained during his presentation at the GM Capital Markets Day event. “We will reduce total trim levels on Equinox and Terrain from eight to six, reduce engine variants from 11 to five, reduce build combinations from more than 200 to less than 100 per program, and see significant cost savings of an already paid-for architecture that took the mass out, helping us self-fund electrification programs.”
There is quite a bit there to parse out, so let’s go point by point.
With regard to Reuss’ statement on reducing mass, GM’s new platforms shed an average of 350 pounds, as we covered previously.
Also, the high number of engine variants that Reuss references likely includes international build combinations, with the unique engines offered in markets like Australia and South America adding to the total.
What’s more, the “paid-for architecture” statement is likely a reference to the GM VSS-F vehicle set, which underpins the new Chevrolet Trailblazer and Buick Encore GX.
With more streamlined build combinations for models like the future Chevrolet Equinox and GMC Terrain, GM looks poised to free up a good deal of bandwidth for its high-priced development efforts, which include electric vehicles and autonomous driving technology. And with products like the upcoming GMC Hummer electric pickup and Cruise Origin self-driving taxi just over the horizon, the time is now with regard to reducing complexity in the available build combos for these vehicles.
Which combos would you like to see stick around for the future Chevrolet Equinox and GMC Terrain? Let us know in the comments, and make sure to subscribe to GM Authority for more Chevrolet Equinox news, GMC Terrain news, Chevrolet news, GMC news, and around-the-clock GM news coverage.
Comments
Cutting down on the combinations from 200 to 100 makes sense as this is what some restaurants do by reducing their menu items because having too wide of a spectrum of products is expensive especially if it’s something that not very many people want; by reducing the combination in half, overall production cost of the Chevrolet Equinox and GMC Terrain should drop as this could mean more affordable vehicles for the consumer.
Everything to finance electrification rather than to bring a better product that people actually buy.
They are eventually phasing out most of their gasoline motors. Some of the current variants may be in their last generation now.
With all these savings, it really makes a good sense for GM and it’s investors. What about the consumer? Is it just me or in average competition has more to offer for the buck? Why not reduce the number of transmissions used in trucks, drop the 6 and 8 speed and use only the 10 speed.
Good, PSA traveled this path already, and this immediately aided Opel.
GM is already behind the curve not having an architecture capable of gas, electric and diesel. Such a strategy reduces parts and eliminates the need for EV platforms and will aid FCA moving forward as it will be able to dispel ld$M bbn bbn M bbn bbn bbn hcm M bu 8
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Were you dozing off when typing the last part of your post!!?? Or can you translate what …bbn hcm…’ for us?
These cost moves are not just a GM thing as most companies already have them or are adopting them.
As cars have become appliances people are getting less demanding on options but more demanding on affordability.
Options are going to be left to the higher end products and performance products.
Trucks may be somewhat immune too as the volume permits more variations.
Interesting.
Equinox 2.0T AWD should be kept around. That’s a nice little package and sets the vehicle apart from the CR-V and Rav-4.
I’m old enough to remember when I first got into auto sales. Computers were still only really used by a small number of people and we still used “order books”. It was normal for a customer to come in, look at cars on the lot (dealers didn’t stock as many then as now), and then sit down to order their car. We had to hand-write the purchase order to turn in for the car to get submitted. Let me just say, there were a lot of options and combinations back then.
Based on that experience, for years now I’ve said that they need to simplify the lines. For example, the Equinox could be offered in base, LT and premium. GMC in SL, SLT and Denali (they may actually do that already). Have just one standard engine and one up-level engine. Allow every color on every trim. Stop making options that bring a base car up close to the higher level trim. Use the KISS method.
GM needs to look at Honda for simplification. Very few factory order options, just pick the model that has the options you want. Yea, you might have to get a few things in the next package you didn’t need, but if you buy a GM car off the lot with all the possible combinations odds are it has a few extra options you didn’t want anyway. I never understood why other automakers don’t do this, saves tons of money and simplifies inventory, making it easier for the dealer to have the right vehicle on hand. And it would avoid awkward inventories of mid level vehicles optioned up to more then the next model base price, often with those options included. It also opens the door to more profitable dealer installed options.
That Equinox refresh looks fantastic.
The Equinox needs more soft surfaces on the premier trim. The LT trim is pretty competitive though.
Still sad they shrunk the Equinox Would replace my 2016 but do I go smaller or spend over $10 thousand more to get the equivalent Blazer. to get the similar wheelbase. and please lets get something besides jet black for interiors. or the horrible brown tones Chevrolet has in interiors GMC and Buick have nice interiors why not Chevrolet If they want to reduce numbers of combinations look at Silverado it is crazy how many models and trims.
dealers order very few interior colors other than black because of prior experience they get stuck with them I like tan with the right exterior color but keeping it spit shine clean is a pain would love a burgundy interior but that ship has long sailed away
So what this means is less choices than the few we already have. I would also expect the 2.0T to be restricted to top shelf Premier models or only AWD on the Equinox. Note that GMC already took away the 2.0T option on the SLE trim level for 2020 meaning it can only be ordered on the SLT and Denali trims.