GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

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Thread: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

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    GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Link: http://wardsauto.com/ar/gm_equinox_demand_100701/

    By Eric Mayne and James M. Amend
    WardsAuto.com, Jul 1, 2010 2:30 PM

    Despite rising demand for the Chevrolet Equinox cross/utility vehicle, General Motors Co. is unable to accelerate its plans to increase production. “If we could, we would – believe me,” Steve Carlisle, vice president-product planning says today during a sales briefing for analysts and journalists.

    Also GM is scrambling to meet demand for its popular Equinox, which saw June sales shoot up 179.7%, compared with like-2009, according to Ward’s data. The auto maker is spending more than $90 million on a multi-phase initiative to boost production of the CUV and its platform-mate, the GMC Terrain.

    The first phase involves line retooling and a body-shop upgrade at GM’s assembly plant in Ingersoll, ON, Canada. Output is expected to increase from 795 vehicles per day to 996 by Aug. 2.

    Those improvements “are going on now,” Carlisle says, confirming next month’s target for increased output. GM also plans to squeeze an additional 300 bodies per day from Ingersoll and ship them to the auto maker’s plant in Oshawa, ON, about an hour away, for final assembly. Oshawa output is set to begin in the fall.

    The Equinox’s styling, content and perceived value is “really resonating” with consumers, Campbell says during today’s briefing.

    Notably, Equinox buyers are opting for a 4-cyl. engine more than 80% of the time, he adds.

    The take-rate on the Terrain is 60:40 in favor of the 6-cyl. engine choice.

    Full article at link.

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    News Contributor Premium Member Perian's Avatar
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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by Perian View Post
    Notably, Equinox buyers are opting for a 4-cyl. engine more than 80% of the time, he adds.

    The take-rate on the Terrain is 60:40 in favor of the 6-cyl. engine choice.[/I]
    To those who rally against GM branding and the existance of GMC, here is an example of something that works. There seems to be quite a different make-up in the Equinox buyer vs. the Terrain buyer.

    At an optional $1500 each, the profit on those V6 engines adds up fast.



    Side Note: Imagine - the trucks that will be transporting the Equinox bodies between plants will be traveling more than 18,000 miles...per day! Also - the 300 additional Equinox bodies will not have a sunroof option due to the complexity of build.

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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by Perian View Post
    To those who rally against GM branding and the existance of GMC, here is an example of something that works. There seems to be quite a different make-up in the Equinox buyer vs. the Terrain buyer.

    At $1500 each, the profit on those V6 engines adds up fast.
    yep, they are a different set of customers no doubt, and usually they are ok with paying a premium. GMC is here to stay and that is awesome.
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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    With the apparent popularity of the 4-cylinder, you'd think that GM would be making plans to a more powerful/performance tuned engine.

    The 2.0L turbo Ecotec would be an ideal option, and just drop the the 3.0 V6.
    Last edited by EJD1984; 07-02-2010 at 07:23 AM.

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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    When you want professional grade, you want a V6, perhaps GM should also make a small displacement V8 to boost and put in some of these products?

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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by EJD1984 View Post
    With the apparent popularity of the 4-cylinder, you'd think that GM would be making plans to a more powerful/performance tuned engine.

    The 2.0L turbo Ecotec would be an ideal option, and just the the 3.0 V6.
    A 2.0T option might appeal to Equinox buyers, though I think GMC buyers would still rather have the naturally aspirated V6. They need to release a Terrain Denali with a 3.6L SIDI or 3.0TT to milk even more from this cash cow.
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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    I am surprised by the high take rate of the 4cly. I could never have such a gutless SUV. Sacrifice a few of the toys for the V6 any day
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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    A refreshing problem for GM to be facing, for sure.

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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by mbukukanyau View Post
    When you want professional grade, you want a V6, perhaps GM should also make a small displacement V8 to boost and put in some of these products?
    Terrain Denali.... Could be interesting....
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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by Perian View Post
    Also - the 300 additional Equinox bodies will not have a sunroof option due to the complexity of build.
    Not complexity, Oshawa will not build the sunroof versions for efficiency purposes. All bodies shipped to Oshawa will be identical and therefore can be used for production of any Equinox build when it is needed. Building both versions (sunroof/non-sunroof) requires two different body styles, one with a hole in the roof and the other none, which then brings up line sequencing issues.

    Building only one type at Oshawa is done so in the event a carrier does not arrive on time (accidents/traffic delays/etc.), the next carrier or any inventory on site can be fed to the line eliminating any down time or missed builds.

    The need for sequencing the two different types to feed the line (sunroof/non-sunroof) is eliminated. This is also the reason Oshawa will not build the Equinox's twin the Terrain.

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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by Olds88 View Post
    A 2.0T option might appeal to Equinox buyers, though I think GMC buyers would still rather have the naturally aspirated V6. They need to release a Terrain Denali with a 3.6L SIDI or 3.0TT to milk even more from this cash cow.
    Yes! couldn't agree more, GM better not muck up the Terrain Denali like they did with the Acadia Denali.. would they put the 3.6 DI in the Terrain if it wasn't in the Acadia?
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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by Olds88 View Post
    A 2.0T option might appeal to Equinox buyers, though I think GMC buyers would still rather have the naturally aspirated V6. They need to release a Terrain Denali with a 3.6L SIDI or 3.0TT to milk even more from this cash cow.
    That sounds awesome! I'm sure that a lot of the buyers would opt for it since GMC is all about Professional Grade, and a 3.6L in a Terrain would absolutely help let everyone know.
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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by Perian View Post
    To those who rally against GM branding and the existance of GMC, here is an example of something that works. There seems to be quite a different make-up in the Equinox buyer vs. the Terrain buyer.
    At an optional $1500 each, the profit on those V6 engines adds up fast.
    At last!!!! Someone who actually gets it about GMC buyers not being Chevy buyers....ever.

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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    Quote Originally Posted by TomDotCom View Post
    Not complexity, Oshawa will not build the sunroof versions for efficiency purposes. All bodies shipped to Oshawa will be identical and therefore can be used for production of any Equinox build when it is needed. Building both versions (sunroof/non-sunroof) requires two different body styles, one with a hole in the roof and the other none, which then brings up line sequencing issues.

    Building only one type at Oshawa is done so in the event a carrier does not arrive on time (accidents/traffic delays/etc.), the next carrier or any inventory on site can be fed to the line eliminating any down time or missed builds.

    The need for sequencing the two different types to feed the line (sunroof/non-sunroof) is eliminated. This is also the reason Oshawa will not build the Equinox's twin the Terrain.
    Your explanation makes a whole lot more sense than the "too complex" one.

    There's no way many people that post here will believe it.

    BTW, I wonder if the 2011 V6 going to flex fuel will help increase the take ratio. (the obligatory ethanol argument will follow) For those of us with easy access to E85, the price difference of fuel could almost sway me to consider a V6. But I also wonder if many of the fuel system parts that make a V6 Theta E85 capable cross over to the 4 cylinder.

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    Re: GM Scrambling to Meet Equinox Demand; Equinox is 80% 4 Cylinder; Terrain Just 40%

    If these numbers are from GM, it's a shock to me. Our dealership hasn't ordered a stock 6 cylinder Terrain in 4 months. My next 16 units are all 4's. I currently have zero Terrains in stock, so any improvement in production is welcome. There is no need for more power in the 4 cylinder, it's the 32 MPG that is selling it. The only 6 cylinders we are selling is to people that tow, and die hards that wouldn't consider a 4 if it was the last car on earth. I have heard rumblings about a Terrain Denali, but I doubt we will see anything on it until the other plant is pumping out Equinox's.

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