Chevy Equinox inventory was less than 1,000 units nationwide at the beginning of October, GM Authority has learned from sources familiar with the matter. The extremely low figure is the result of all the three plants that produce Chevy’s best-selling crossover having been idle for the greater part of 2021.
GM originally started production of the 2022 Chevy Equinox on June 22nd but the ongoing semiconductor shortage forced the automaker to idle production. GM originally planned to restart production on October 4th, but those plans were subsequently pushed back to October 15th, with the latest date now being November 1st. That, too, could change since the chip situation remains fluid.
The ongoing global semiconductor chip shortage has negatively impacted production of the Chevy Equinox, a recurring story that GM Authority has reported on time and again for models across all of GM’s four brands. But GM Chief Financial Officer, Paul Jacobson, expects the automaker’s chip supply to even out in 2022 as suppliers catch up with an unexpected jump in demand.
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 units of the Equinox destined for the U.S., but production of the vehicle has been getting pushed back at all three facilities. Once Equinox assembly finally resumes, GM will release approximately 8,400 units as part of the first production batch to inventory-starved dealers.
General Motors isn’t alone when it comes to feeling the impact of the microchip shortage. Indeed, the entirety of the auto industry continues to grapple with the crisis, which has 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 the “build-shy” approach, which involves producing models in 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 the necessary chip supplies are acquired, the vehicle is then completed, after which it is shipped out to dealers.
The latest such example involves the 2021 Chevy Camaro, with build-shy units being retrofitted and shipped out to dealers.
Another strategy GM has employed to navigate the microchip shortage involves deleting certain features that require microchips, such as removing fuel management tech from certain full-size trucks as well as SUVs.
A lack of ample Chevy Equinox supply continues to contribute to declines in sales volume, with the crossover posting a 21 percent drop in deliveries during the first six months of 2021. Segment share, as a result, fell to six percent from 10 percent over a year ago.
Sales Numbers - Mainstream Compact Crossovers - Q3 2021 - United States
|MODEL||Q3 21 SHARE||Q3 20 SHARE||YTD 21 / YTD 20||YTD 21||YTD 20|
|FORD BRONCO SPORT||4%||0%||*||81,204||0|
|MITSUBISHI ECLIPSE CROSS||0%||0%||-20.90%||6,941||8,775|
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 was the complete removal of the turbocharged 2.0L I4 LTG engine, which served as a more powerful option in the vehicle.
The refreshed model was originally planned and announced as the 2021 Chevy Equinox before being delayed as a result of the COVID-19 pandemic. It launched the next model year as the 2022 Chevy Equinox.