Reducing build combinations is among the actions the automaker is taking to support its EV product plans and find profit opportunities in preparation for the next economic downturn.
General Motors' need to funnel more capital toward electric vehicles means buyers of the next-generation Chevrolet Equinox and GMC Terrain won't be able to choose from as many colors, engines or other options. Fewer choices allows GM to save significant money by ordering fewer parts.
The compact crossovers' next redesign, which Automotive News has reported is likely in 2023, will incorporate more reused and shared parts, Reuss said. GM will cut the number of trims to six from eight, and five engine variants will be offered instead of 11. Overall build combinations will be cut to fewer than 100 per program from 200 today, Reuss said.
"This action will help us self-fund our electrification programs," Reuss said. "And beyond that, we'll continue doing all the big-picture things like getting out of footprints that don't make money."
Reducing complexity is among the actions GM is taking within its manufacturing process to support its EV product plans and find additional profit opportunities in preparation for the next economic downturn.