General Motors has confirmed it will extend the production halt of the Chevy Equinox at all three of the North American assembly plants where the crossover is built until September 20th. Production of the GMC Terrain will also be idled at the GM San Luis Potosí plant in Mexico for the same duration.
The Chevy Equinox is currently produced at the GM CAMI Assembly plant in Ontario, as well as the GM San Luis Potosí and GM Ramos Arizpe plants in Mexico. The CAMI Assembly and San Luis Potosí plants were already paused and will now take additional downtime until September 20th.
Production at Ramos Arizpe Assembly is currently up and running for the Chevy Blazer only, however Blazer production will now be paused from August 23rd to August 30th. Production of the Chevy Equinox was already offline at Ramos Arizpe prior to this recent two-week downtime extension.
Smaller crossover vehicles like thee Chevy Equinox and GMC Terrain have taken a back seat to other GM products amid the semiconductor chip shortage – namely full-size trucks and SUVs. This strategy has allowed GM to prioritize hot-selling and profit-heavy models like the Chevy Silverado and Chevy Tahoe amid the shortage, reducing the latter’s impact on its bottom line.
GM has also tried to avoid taking production downtime at the Orion Assembly plant amid the chip shortage, which produces its only battery-electric models, the Chevy Bolt EUV and Chevy Bolt EV. However, it announced this week it would pause production at Orion Assembly from August 23rd to August 30th due to the chip shortage.
Going forward, GM is hoping to avoid future chip shortages like the one it’s currently facing by negotiating stronger supply contracts with chip makers, the automaker’s CFO, Paul Jacobson, said earlier this year.
“Whether we work with foundries to give longer-term commitments or we look to partnering with folks, we’re looking at all aspects of the supply chain to really ensure that something of this magnitude as it relates to chips doesn’t happen again,” Jacobson said.