Chevrolet Equinox Inventories Dwindling, But No One's Panicking Just Yet

It was another hot month for the 2018 Chevrolet Equinox in September, especially when contrasted with last year’s sales. U.S. sales last month amounted to an 80-percent year-over-year increase, with 27,512 vehicles sold, while Canada’s 2,079 vehicles sales represented a 27-percent increase, year-over-year.

Both countries’ year-to-date tallies are on the upswing, outranking last year’s total by 22 percent in the U.S. and 27 percent north of the border. Good news for General Motors, but worrisome when you consider the main Equinox production line shut down over two weeks ago. Workers at the CAMI plant in Ingersoll, Ontario, are still on strike. Meanwhile, the amount of Equinoxes in GM’s inventory is dropping steadily.

It’s not a crisis yet, but if GM and its unionized plant workers don’t reach an agreement soon, it could turn into one.

In July, GM enjoyed a well-above-average 74-day supply of Equinox crossovers. That wasn’t a concern, as this summer was a scorching period for crossover sales — the Equinox included. The supply shrunk to 53 days’ worth at the beginning of September. Then, late in the day on September 17th, workers dropped their tools and picked up picket signs in Ingersoll, leaving Equinox production to two low-capacity Mexican plants that can’t generate nearly the same volume as CAMI.

One Canadian GM transmission plant churned out trannies for another week following the shutdown, leaving it with a stockpile (and currently a reduced workforce).

With GM and the workers’ labor union deadlocked, and with strong sales continuing, Equinox inventory shrunk to a 41-day supply at the beginning of October, according to the Automotive News Data Center. That’s far less than the ideal 60-plus-day supply for that particular model. What’s worse is that sales typically pick up in the final quarter of the year.

If GM is feeling nervous, it’s keeping those jitters well hidden.

“We believe we have sufficient inventory and production to meet demand while negotiations continue and we continue to work closely with dealers to ensure customers continue to be well served,” the company said in an email to Automotive News. A number of Chevrolet dealers have told AN they’re concerned about the strike, especially given the quick pace at which Equinoxes are leaving dealer lots.

It isn’t known just how many Equinoxes are rolling out of Mexico, which makes predicting when the supply will reach zero difficult.

As for the strike, there’s little to report. In its latest update, Unifor Local 88 claims it is “still waiting for a positive response.”

“We remain far apart on Economics and Job Security and await a response from GM Detroit on these outstanding issues,” said Local 88 president Dan Borthwick in a blog post. “Unifor has been in contact with GM Detroit daily, attempting to resolve our issues.”

“We are currently waiting for GM Detroit to respond to our outstanding Economic and Job Security items, with this being the case the Company and the Union have agreed to take a break over the weekend and reconvene on Tuesday, October 10 for a status update.”

Borthwick claims the union’s bargaining committee and national representatives are ready to meet with any GM official at a moment’s notice.

[Image: General Motors]