The plants that build the Chevy Equinox and GMC Terrain were previously set to come back online on October 4th, but a shortage of semiconductor chips has delayed the restart date by another week and a half.
The Chevy Equinox and GMC Terrain are produced at three North American facilities, including CAMI in Canada and the Ramos Arizpe and San Luis Potosí plants in Mexico. While the CAMI plant has been offline since February, production of the Equinox and Terrain went offline at Ramos Arizpe and San Luis Potosí in August. GM had initially said production of the nameplates would return at all three plants on September 20th before extending the date to October 4th and now the 15th.
GM plants building smaller, less profitable passenger vehicles have taken a back seat to those building full-size trucks and SUVs amid the global chip shortage, as vehicles like these are the bread and butter of the automaker’s business. Other GM plants that have experienced recurrent downtime this year include GM Wentzville Assembly in Missouri, Lansing Delta Township Assembly in Michigan and Spring Hill Assembly in Tennessee.
These plant shutdowns have resulted in unusually low inventory levels at General Motors dealerships in the U.S. and Canada. Despite the low stock, dealers are reporting record profits, with high demand driving more customers to pay MSRP, or in some cases above MSRP, to get the vehicle they want. Incentive spending has also dropped significantly at GM due to high demand and low inventory, falling by 23 percent in Q2 2021.