Exclusive: GM plans to move some Chevy Equinox assembly to Mexico Reuters
By Bernie Woodall and Paul Lienert
Wed Aug 27, 2014
General Motors Co and the United Auto Workers on Wednesday trumpeted the news that production of the Cadillac SRX would be shifted from Mexico to Tennessee, but Reuters has learned that GM also plans to move some other assembly work in the opposite direction.
The company plans to shift some production of the Chevrolet Equinox from Spring Hill, Tennessee, to Ramos Arizpe, Mexico, when the crossover vehicle is redesigned in 2017, according to an industry source familiar with GM’s plans. That move could partially offset any new jobs created by the shift of SRX work from Ramos Arizpe to Spring Hill, which is expected in mid-2016, the source said.
Both GM and the UAW declined to comment on whether the Equinox work would move to Mexico.
GM plans to build the next-generation Equinox, along with a replacement for the GMC Terrain, another crossover, in Ingersoll, Ontario and Ramos Arizpe, according to the source.
I thought the Opel Antara/ Captiva where to become one with the NG Equinox so in a way it is NOT a NEW product for MX as the Captiva would be replaced with the Equinox anyways
and if that is the "PRICE" to pay to "A" keep MX sales + the "inshore" SRX production to the USA I say go for it and I believe Ingersoll and Ramos are some of GM's BEST plants for quality
Additionally (now that I see the whole picture) it actually makes sense; GM will have the C1's in Lansing, MI and Spring Hill, TN and the D2's in CAMI and Ramos.
The biggest in-efficiency (currently) is making the Theta, which has enough volume for 2 plants, in 4 locations.
Spring Hill and Lansing were both suppose to make the Lambda's all along, so the fact that we fast-forward and they are making their replacement, is merely getting the train back on the tracks.
Additionally (now that I see the whole picture) it actually makes sense; GM will have the C1's in Lansing, MI and Spring Hill, TN and the D2's in CAMI and Ramos.
The biggest in-efficiency (currently) is making the Theta, which has enough volume for 2 plants, in 4 locations.
Currently the Captiva - Equinox and Terrain make up over ~450K/year in sales in North America. That is too much for two plants. Throw in the Envision at likely another ~120K/year in sales GM will need three plants running near 100% just to meet demand. GM will likely need a fourth with a flex line to run overflow.
Most of GM's plants capacity tops out around 200 to 250K / year / line
To add Captiva is only around 60K per year so even if you subtract that volume it doesn't change much.
Don't forget the Regal goes back to Germany next year too. If you ask anyone that works in Oshawa we're not really worried about that, either you have 30 years or you are a new hire. New hires are few so in 2015 when the U. S. contract is done, then we will all know if Oshawa will continue or close. If it closes it will be a stand alone plant closure, large money for everyone under our contract not to mention we can pull our pension out of GM by Canadian law. Everyone since the bankruptcy that retired from trades that I know has pulled there money out of GM. But on a good note we started stamping cruze hoods in Oshawa metal centre this week.
This all depends on whether the global captiva, the US captiva and the Equinox are getting consolidated and whether the GMC Terrain will go global as a Chevrolet.
Good move; makes perfect sense. I would imagine that the Equinox and Captiva will be the same vehicle and by building that vehicle in Mexico, GM will be able to export high volumes to Europe and other continents without paying high tariffs on U.S. made vehicles. U.S. bound Equinoxes will probably be done in Ontario or Spring Hill. Remember the SRX is also sold world around the world, but it is in much smaller volumes, but much larger margins; so GM will be taking on much smaller tariffs.
All the speculation about what is moving where, but there is no mention of what product Lansing Delta Township will get if the Acadia is moved out. I did not hear anything about a shift reduction or layoff there, but in fact $37 million is being invested to expand the plant. With the Equinox production shared with Mexico, perhaps the Envision is headed to Lansing Delta?
I so wish they could have swapped over to the superior 2.5 as the base engine for this generation Equinox because I don't like the sound of what they are doing to the next gen.
Aren't there some trade agreements between Mexico and South America where if you want to sell vehicles in SA they either have to be built in SA or Mexico?
So if GM is considering selling the new Equinox south of south of the border Mexico makes sense.
Aren't there some trade agreements between Mexico and South America where if you want to sell vehicles in SA they either have to be built in SA or Mexico?
We should have a trade agreement that if you want to sell here your manufacturing operations have to meet our health&safety and environmental regs.
Are we (people) all not supposed to be created equally?
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