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Chevy Equinox Production Drop Isn't America's Fault

Crossover

So who's the culprit?

It's been a tough year for the Chevy Equinox. The diesel engine option is not returning for 2020 to the compact crossover, despite its excellent fuel economy figures. On top of that, and despite seemingly solid sales so far this year, July and August are seeing heavy discounts. This should spell good news for everyone, including those shopping around in the competitive small crossover market. However, Automotive News is reporting that GM is scheduling a temporary layoff of workers at its CAMI Assembly plant in Ontario, Canada, and cutting one of three shifts at a plant in Mexico.

According to GM, the cuts in production are "due to variations in the industry forecast in different export markets.” Which makes sense as Equinox sales have gained by 11 percent in the first half of this year with 174,157 Equinox models being delivered, but in Canada deliveries have declined to 7 percent with just 9,687 reported so far.

According to the Automotive News Data Center, CAMI's vehicle production fell by 1.2 percent in the first half of the year to 113,231 units while output at the San Luis Potosí plant in Mexico declined by 12 percent to 167,693 units.

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The heavier decline in the Mexican plant's demand probably explains why GM chose to cut a shift there instead of Ingersoll. Another explanation was given by Unifor Local 88, which represents workers at the Ingersoll plant. "I think it’s a sign that GM does recognize our quality,” said Unifor Local 88 President Joe Graves.

So, despite the warning signs, the impressive local sales figures suggest the Equinox is safe for the US market in the foreseeable future. The discounts are equally likely demonstrating that GM wants to keep the Equinox's hot sales status here, and the automaker is most likely adjusting its production targets more to do with trade tensions escalating while sales fall in Canada.

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