BREAKING: Report States GM To Move GMC Terrain Production To Mexico

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Thread: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

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    BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Bloomberg.com
    January 9, 2017

    General Motors Co. will move production of its revamped GMC Terrain to Mexico from Canada and expand production of the Ontario plant’s Chevrolet Equinox, reflecting the growing popularity of compact sport utility vehicles.

    The Detroit-based company currently makes both vehicles Ingersoll, Ontario. GM showed the new upscale Terrain for the first time Sunday night on the eve of the Detroit auto show.

    GM has a lot riding on the Equinox and Terrain, which go on sale as redesigned models in the first quarter and this summer, respectively. Small SUVs are a booming segment of the market and a big moneymaker for the company, so when GM planned the new versions, it decided to increase output from one factory to three -- adding the vehicles at two existing facilities in Mexico, according to a GM spokesman.

    While the move is GM’s bet that more inventory will mean more new buyers, as well as a play to make more on each sale, it’s also partly a response to hyper competition among automakers seeking an edge through lower production costs. Even so, moving production of the new upscale Terrain to Mexico instead of the U.S. may risk testing the patience of President-elect Donald Trump, who has already has used Twitter to chastise GM and Toyota Motor Corp. for importing low-priced compact cars from south of the border. While the companies also sell these models in emerging markets, GMC is chiefly a U.S. brand with premium SUVs that have fatter sticker prices and higher profit margins than small cars.

    “I’m sure we’ll see a tweet” said Kristin Dziczek, analyst at the Center for Automotive Research in Ann Arbor, Michigan. “Labor costs are part of it, but it’s a competitive issue. Once some of the manufacturers go down there, more of them have to.”

    The 2015 labor agreement with the United Auto Workers union boosted wages and benefits for thousands of younger U.S. employees who previously made much less than veteran factory hands. Mexican autoworkers earn an average of $8.24 an hour in pay and benefits, compared with $46.35 an hour for those in the U.S. Canadian workers get similar compensation.

    Duncan Aldred, vice president of global GMC sales and marketing, said GM is using existing plants that can handle the production volume. He would not elaborate on Trump’s potential trade policies.

    “We have been planning this for a long time, and we’re using our existing footprint,” he said.

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Just a four letter reply: W.W.T.D.



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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Mary's got some 'splainin' to do! Trump's first Bus Advisory meeting is going to be interesting.......
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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Better call Trump


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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Quote Originally Posted by CJH View Post
    Mary's got some 'splainin' to do! Trump's first Bus Advisory meeting is going to be interesting.......
    Moving production FROM CANADA
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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    So buick CUVS from Korea and China, Chevys and GMC from Mexico while cutting car production in N.A.?

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Not totally surprising. Ingersoll today can't keep up with Equinox and Terrain production (running three shifts 6 days a week for many years now). So much so that Oshawa was used for overflow for Equinox and that wasn't enough and for a bit Spring Hill was used to build Equinox as well.

    Spring Hill is now busy with Acadia and XT5 production. Not sure what is in store for Oshawa in regards to Equinox overflow. Ingersoll has seen upgrades for more capacity but there was always going to be a need for a second plant.
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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Does this mean the Terrain will be 35% more expensive?
    Last edited by jpd80; 01-09-2017 at 05:14 PM.

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    UNLEASH



    THE FURY

    Let me get this straight, though... is the Terrain from "premium brand" GMC moving to Mexico to improve margins and lower labor costs?

    Or, as I just heard Mary reiterate today their policy of "build where we sell," is that where they intend to sell most Terrains?

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Quote Originally Posted by MechEng View Post
    Not totally surprising. Ingersoll today can't keep up with Equinox and Terrain production (running three shifts 6 days a week for many years now). So much so that Oshawa was used for overflow for Equinox and that wasn't enough and for a bit Spring Hill was used to build Equinox as well.

    Spring Hill is now busy with Acadia and XT5 production. Not sure what is in store for Oshawa in regards to Equinox overflow. Ingersoll has seen upgrades for more capacity but there was always going to be a need for a second plant.
    Keep in mind, there's still the Chevy Blazer, Buick Enclave, Cadillac XT7, and XT3 coming. There's going to be plenty going around.

    XT3 & the Envision could easily come to Lordstown.

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Quote Originally Posted by MechEng View Post
    Not totally surprising. Ingersoll today can't keep up with Equinox and Terrain production (running three shifts 6 days a week for many years now). So much so that Oshawa was used for overflow for Equinox and that wasn't enough and for a bit Spring Hill was used to build Equinox as well.

    Spring Hill is now busy with Acadia and XT5 production. Not sure what is in store for Oshawa in regards to Equinox overflow. Ingersoll has seen upgrades for more capacity but there was always going to be a need for a second plant.
    The Equinox will stop going to Oshawa as overflow when the new 2018 model starts. Plant will close.

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Quote Originally Posted by sfbreh View Post
    UNLEASH

    THE FURY

    Let me get this straight, though... is the Terrain from "premium brand" GMC moving to Mexico to improve margins and lower labor costs?

    Or, as I just heard Mary reiterate today their policy of "build where we sell," is that where they intend to sell most Terrains?
    Don't be simple. The Terrain is highly likely to be coming to Opel in Europe. The EU has a much better trade agreement with Mexico than the US. That's why the Q5 and QX30 are also being built in Mexico. If you want production in the US, tell Trump to make a better agreement.

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    How dare those Mexicans steal jobs from Canadians!
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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Quote Originally Posted by dslay04 View Post
    Keep in mind, there's still the Chevy Blazer, Buick Enclave, Cadillac XT7, and XT3 coming. There's going to be plenty going around.

    XT3 & the Envision could easily come to Lordstown.
    Ah, not according to Mary and friends.

    Envision is being imported to grease the skids of our collective anus for more Chinese imports.

    It's not about can or could, it's about will be.

    Respond well to the Envision, respond well to a CT6 plugin, and... what's the difference?

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    Re: BREAKING: Report States GM To Move GMC Terrain Production To Mexico

    Quote Originally Posted by Mr. GM View Post
    The Equinox will stop going to Oshawa as overflow when the new 2018 model starts. Plant will close.
    Not according to their contract with the CAW/Unifor. Oshawa is supposed to stay open for a few years.

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