Chevy Equinox inventory was at just 17 days supply in the U.S. as of the beginning of August, GM Authority has learned from sources familiar with GM’s go-to-market strategy.
The Equinox inventory problem will likely get worse before it gets better. There were only 2,300 units of the Equinox in transit to dealers as of the first week of August. Additionally, production of the Chevy Equinox has once again been pushed back as a result of the ongoing global semiconductor shortage. The new production restart date, as GM Authority previously reported, is October 4th.
The Chevy Equinox is produced across three North American facilities for the same market, including the GM CAMI plant in Ingersoll, Canada, the GM Ramos Arizpe plant in Mexico, and the GM San Potosí plant, also in Mexico. CAMI is the primary plant for Equinox production for the U.S., but all three facilities have pushed back Chevy Equinox production to the October 4th date.
General Motors isn’t alone when it comes to feeling the impact of the global microchip shortage. Indeed, the entirety of the auto industry continues to grapple with the effects, which have now extended to other industries as well.
General Motors has contended with the global microchip shortage since earlier in the 2021 calendar year, employing a number of different strategies to curb production stoppages and keep vehicles rolling off the line. One of these is known as a “build-shy” approach, which involves producing models an incomplete state, or without the chips necessary to make the vehicles operate. Once produced, the built-shy model is then parked to await microchips. Once additional supplies are acquired, the vehicle is then completed, after which it is shipped out to dealers.
Another strategy General Motors has employed involves deleting certain features that require microchips, such as Active Fuel Management and Dynamic Fuel Management, as the automaker has done on the GMC Sierra and Chevy Silverado pickups. Unfortunately, experts predict that the microchip shortage could last for quite some time, with the latest predictions extending it well into 2023.
A lack of ample Chevy Equinox supply has resulted in a marked decline in sales volume, with the crossover posting a five percent decline during the first six months of 2021. Segment share, as a result, has decreased from 10 to seven percent.
Sales Numbers - Mainstream Compact Crossovers – H1 2021 - United States
|MODEL||Q2 21 SHARE||Q2 20 SHARE||YTD 21 / YTD 20||YTD 21||YTD 20|
|FORD BRONCO SPORT||5%||0%||*||60,514||0|
|MITSUBISHI ECLIPSE CROSS||0%||0%||-31.33%||4,358||6,346|
GM refreshed the Chevy Equinox for the 2022 model year, giving its best-selling CUV new front and rear ends, a new RS trim level, plus various other minor enhancements and new features. One major change is the complete removal of the turbocharged 2.0L LTG engine, which served as a more powerful option in the vehicle.