Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

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Thread: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

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    Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    GM: Fewer configurations, more money
    By Hannah Lutz
    February 10, 2020
    Automotive News



    Photo: 2020 Chevrolet Equinox


    Photo: 2021 Chevrolet Equinox

    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.








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    Last edited by nadepalma; 03-01-2020 at 10:31 AM. Reason: Reformatted; corrected article link

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    GM will cut the number of trims to six from eight, and five engine variants will be offered instead of 11.
    Well, this route worked for Toyota years ago. In fact, it worked for Saturn years ago. Let's hope it works for the next generation of Equinox and Terrain vehicles.

    The reduction in ICE choices could also indicate that a EV version(s) of Chevrolet's second most popular vehicle is on the way.








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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Looks good for a CUV, Bowtie in correct location now.
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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    The Equinox has only 2 engine choices now and the 2.0l turbo is only available on the top two trims. The same engine in a different trim level isn't another engine variant. How is Toyota and Honda doing that differently?

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    hopefully a LOT if the variations cut are the ones that make the mid / lower trims LOOK LIKE a "dogs lunch"
    I also do NOT know how you get 11 "engine" choices but assume "PT" is what they are referring to
    I would like to see GM consolidate to say a Turbo and a "E assist" motor and all have the 9 speed trans IF not already done

    The Equinox has only 2 engine choices now and the 2.0l turbo is only available on the top two trims. The same engine in a different trim level isn't another engine variant. How is Toyota and Honda doing that differently?
    I don't follow the 'nox but wonder how they HAVE 11 powertrain choices unless they are including the NOW dead Diesel OR V6 options

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Not to be a party pooper, but doesn't offering less content and/or options set you up for less sales thereby resulting in less profit? Maybe I'm just dense, but I thought variety was the spice of life.

    Could someone also explain this to me? "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."
    It sounded pretty good until I actually said it.

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Quote Originally Posted by IROCNROL1 View Post
    Could someone also explain this to me? "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."
    Sure thing IROCNROL1. Remember the "vaporware" that Mark Reuss mentioned? It's a great profit opportunity!
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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Reducing choices is a sure thing that will turn customers away, they never learn.

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Reducing complexity actually makes shopping easier, just ask any Tesla customer. There is no reason car buying needs to be this complicated, it's very difficult to track down the exact configuration in a color you want with so many possible combinations. This is why I always have to order a car. Bring on the era of simplification!

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Quote Originally Posted by gmmerc5 View Post
    Reducing choices is a sure thing that will turn customers away, they never learn.
    Sure, but reducing choices also reduces prices, which tends to attract MORE customers.

    And let's not pretend that this is just a GM thing, or only related to covering EV developmental costs.
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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Quote Originally Posted by IROCNROL1 View Post
    Not to be a party pooper, but doesn't offering less content and/or options set you up for less sales thereby resulting in less profit? Maybe I'm just dense, but I thought variety was the spice of life.

    Could someone also explain this to me? "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."
    If you sell something for $10 but it costs you $8 and sell 100 of them you make $200 profit.

    If you sell something for $10 but it costs you $6 and you sell 50 of them you make $200 profit. If you sell 80 of them you make $320 profit.

    Add a few zeros on the end of all this and you get my point.

    It pays to lower your costs and piss off some of your customers...

    GM's in it to make money...
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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Quote Originally Posted by CaptainDan View Post
    Sure, but reducing choices also reduces prices, which tends to attract MORE customers.

    And let's not pretend that this is just a GM thing, or only related to covering EV developmental costs.
    However, sounds like GM is going to pocket the savings to put toward electrification, not pass the savings along to the customer. Though it is possible to share some savings with the customer and electrification, I bet they don't do both....

    And overall I agree with you, this is not just a GM thing, they are all doing it, some have always done it (Japanese brands in particular).

    I just hope they don't do with the Equinox what happened to me when building a CT5 on Cadillac's website - they leave the packages there for the customer to click on, but they really are not separate packages, they are bundled together. For example, I selected a $1,900 package and all of a sudden the configurator was adding $10k to the cost of the car because to get that package you have to get all this other stuff..... It pushed the car cost way over what I'd spend. Assuming that Equinox customers are more price sensitive, having a $1,900 bundle at $10k to the cost won't go over well.

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    Quote Originally Posted by IROCNROL1 View Post
    Not to be a party pooper, but doesn't offering less content and/or options set you up for less sales thereby resulting in less profit? Maybe I'm just dense, but I thought variety was the spice of life.

    Could someone also explain this to me? "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."
    No because they give you less and continue to charge you same; see T1XX interior for example.

    Fewer combinations streamlines and simplifies your component inventory and build-combination, means less cash tied-up in parts.

    Maybe now only 3-shades of gray?


    Quote Originally Posted by GMOwner View Post
    If you sell something for $10 but it costs you $8 and sell 100 of them you make $200 profit.

    If you sell something for $10 but it costs you $6 and you sell 50 of them you make $200 profit. If you sell 80 of them you make $320 profit.

    Add a few zeros on the end of all this and you get my point.

    It pays to lower your costs and piss off some of your customers...

    GM's in it to make money...
    In theory, you are correct, the flaw is the cost isn't going to drop by 25% - $8.00 to $6.00; more like $0.025 from $8.00 to $7.975

    Meanwhile cheaper, more mundane product, we won't see lower prices, or higher content; the money goes to the EV/Autonomous Vehicle rat-hole.....................

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    All of this then leads to the thing that gets griped about, the decontenting so to speak. Streamlining and making it less of a pick and choose means it sends people higher up the ladder...and more profits...for which to spend on electrification.

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    Re: Changes Coming To Next Gen Equinox & Terrain Help Pay For EVs.

    You can buy the Model T in any color you want, as long as it's black.

    Reducing possible variations in a product is done by EVERY company EVERYWHERE. They can use the money saved to cut product prices, to increase their profits, or any combination of the two.

    And every company pays for future programs by way of profits on their current offerings.

    Nothing to see here .... move along.
    Last edited by CaptainDan; 02-11-2020 at 05:44 AM.
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