Approaching Peak SUV? GM Cuts Production At Canadian, Mexican Crossover Plants

General Motors will shut down its CAMI Assembly plant in Ingersoll, Ontario for a week starting September 30 and will cut one of three shifts at the San Luis Potosi factory in Mexico from August 12.

What do these two facilities have in common? They both build the Chevrolet Equinox, one of GM’s best-selling models. The Canadian plant supplies the local and U.S. market, while the Mexican factory builds Equinox crossovers for domestic and Latin American markets. In addition, San Luis Potosi also assembles the Chevrolet Trax and GMC Terrain crossovers.

“In keeping with GM’s strategy to align production with market demand, on August 1 CAMI employees were advised of an upcoming down week. No additional scheduling decisions have been confirmed at this time,” GM Canada spokeswoman Jacqueline Thomson wrote in an email to Autonews Canada.

The company does not rule out additional temporary layoffs later in the year. As for the Mexican plant, GM motivated the decision to cut one of the three shifts with “variations in the industry forecast in different export markets.”

While it may seem a relatively minor production adjustment, GM’s decision to cut Chevrolet Equinox production in Canada and Mexico comes amid declining new-vehicle sales in the Americas and could offer clues about an incoming drop in demand for crossovers and SUVs. Basically, GM knows demand for this type of vehicles is waning so it is preparing for it.

Despite GM’s precautionary approach, the Chevrolet Equinox is still doing well in the United States, with sales increasing 11 percent to 174,157 units in the first half of the year. In Canada, however, sales dropped by 17 percent to 9,687 units during the same period.

Also read: Chevrolet Equinox And GMC Terrain Dropping Diesel Option For 2020

It remains to be seen whether the SUV boom is coming to an end, but growth rates have been so big in recent years that it’s hard to imagine they will stay the same in the long run.

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  • LOOKING AT THE ORANGE EXAMPLE IT LOOKS LIKE SOMEONE T-BONED IT. IT HAS ODD HAPHAZARD LINES, CREASES, LUMPS AND DENTS.

    • NormT

      That really is a out standing color in person. And so is the green. Not that I’d buy a car that color.

      • charlotteharry57

        I would. At least its not the ubiq…white, black, silver and grey that we all have. Forced upon us.

  • NormT

    Still segment best cargo holding at 81 cu ft with front passenger set folded.

  • Thetruthísntalwayspopular

    I’m actually surprised it’s selling so many. It’s a truly awkward horrible design. This thing has the whiff of Aztec all over it.

  • db

    I smell some UAW/GM contract negotiation propaganda at work here…

  • hyn sum

    “Approaching Peak GM SUV? is that what he meant?

  • MarketAndChurch

    Don’t mean to be a hater… but its the GM norm. Look at the history of their designs over the past 20 years. Ford was in that slump for a while, at least in their cars and small SUV’s, and Lincoln just had one bad design execution after another. But Ford/Lincoln got things right, special thanks to Hyundai. Oh, and Hyundai-Kia, they started the design revolution we’ve been witnessing for the past 10 years. Dodge has been putting out very attractive vehicles.

    Before this new Corvette, there was very little to cheer for at GM, except maybe GMC. It’s easy to root for Hyundai-Kia, Lincoln, and Dodge, I wish GM would make more of an effort. The Equinox is not a horrible design at all, but it still has a rental car feel, whereas Subaru’s, Hyundai’s, and Honda’s do not.

  • EyalN

    Ford stopped selling cars in the US and GM are saying that the SUV fashion is over?
    I think that they are just moving prduction to China

  • SteersUright

    We’re not reaching peak SUV, we’re reaching peak GM.
    Make ugly, crap cars and eventually the buying public wisens up to your little scam.

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