Equinox Gives Oshawa Consolidated Line Extended Life

Mark Stevenson
by Mark Stevenson
equinox gives oshawa consolidated line extended life

GM Canada announced Wednesday it will make a small investment in Oshawa Assembly’s Consolidated Line thanks to increased demand of the Chevrolet Equinox.

“It’s a modest investment in terms of its size, but it increases the volume of stamping we do at CAMI to increase the run. (The increased stamping) will then boost Equinox production in Oshawa,” GM Canada’s VP of Corporate and Environmental Affairs David Paterson said in an interview with TTAC.

More body panels are stamped at CAMI than that plant’s assembly line can use, which required GM to utilize its “shuttle program” to transport excess Equinox bodies to Oshawa’s Consolidated Line for final assembly, according to GM.

The majority of the $12 million CAD investment will go to CAMI, though the detailed amount was not disclosed. Additional labor will not be needed to produce the additional Equinoxes.

While the success of an 11-year-old model (the Equinox went into its second generation as an enhanced refresh) is newsworthy, there is a larger issue at play.

“That investment has the effect of extending further the Consolidated Line until at least 2017,” said Paterson.

This is the fifth time the Consolidated Line’s death has been postponed in the last ten years, Paterson said. The Consolidated Line was most recently scheduled to shut down in 2016.

Speaking of the Consolidated Line, Paterson said: “It’s the gift that keeps on giving.”

However, the announcement still doesn’t ensure the long-term viability of the manufacturing facility.

Camaro production in Oshawa is scheduled to end this November, while next-generation Buick Regal production is rumored to move solely to Russelsheim, Germany in 2017.

While Cadillac currently produces the XTS in Oshawa, that nameplate will be discontinued at the end of its lifecycle in 2019. However, that best-before date doesn’t secure Oshawa until 2019. Production could be moved to Hamtramck or Fairfax as those assembly plants also build vehicles sharing the same platform, which are the Impala and LaCrosse. Should GM not opt to move production, but continue to sell the XTS in North America, the XTS could be the first Cadillac produced in China and imported to North America — but that’s a far reach.

GM announced they would make a $250 million CAD investment in CAMI for flexible manufacturing similar to Oshawa’s main flex line, seemingly securing the Equinox in Ingersoll, but no investments have been announced for continued production in Oshawa.

If manufacturing departs, GM looks to keep a significant presence in Oshawa for connected car R&D.

Former mayor of Oshawa, John Gray, has encouraged Canadians to boycott GM if jobs are lost. The future of Oshawa assembly activities won’t be announced until 2016 when the company starts labor talks with Unifor.

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3 of 14 comments
  • Mikey Mikey on Aug 20, 2015

    @....pig_iron.....As a retired GM Canada guy, and a Canuck. I thought exactly the same thing.

  • Abitolder Abitolder on Aug 20, 2015

    Oh please, that last line about FORMER Mayor John Gray, he has not been mayor in this fine city for the last 2 terms, being soundly beaten by Mayor John Henry both times. Henry at least is trying to attract business and investment in the city, Gray just used city money to buy himself a Camaro to use for company business. Thank all he is gone.

  • BklynPete So let's get this straight: Ford hyped up the Bronco for 3 years, yet couldn't launch it to match the crazy initial demand. They released it with numerous QC issues, made hay for its greedy dealers, and burned customers in the process. After all that, they lose money on warranties. The vehicles turn out to be a worse ownership experience than the Jeep Wrangler, which hasn't been a paragon of reliability for 50 years. The same was true of the Aviator, Explorer, several F-150 variants, and other recent product launches. The Maverick is the only thing they got right. Yet this company that's been at it for 120 years. Just Brilliant. Jim Farley's non-PR speak: "You don't get to call me an idiot. I get to call myself an idiot first."Farley truly seems hapless, like the characters his late cousin played. Bill Ford is a nice guy but more than a bit slow on the uptake too. They have not had anything resembling a quality CEO since Alan Mulally turned the keys over to Mark Fields - the mulleted glamor boy who got canned after 3 years when the PowerShi(f)t transaxles exploded. He more recently helped run Hertz into the ground with bad QC and a faulty database that had them arresting customers. Ford is starting to resemble Chrysler in the mid-Seventies Sales Bank era. Well, at least VW has cash and envies Ford's distribution reach and potential profitability.
  • Mike Beranek This guy called and wants his business model back.
  • SCE to AUX The solid state battery is vaporware.As for software-limited pack capacity: Batteries are obviously the most expensive component of an EV, so on the rare occasion that pack capacity is dramatically limited (as in your 6-year-old example), it's because economies of scale briefly made sense at the time.Mfrs are not in the habit of overbuilding pack capacity just for fun, and then charging the customer less.Since then, pack capacities have been slightly increased via software because the mfr decides they can sacrifice a little bit of the normal safety/wear margin in the interest of range. We're talking single-digit percentages, not the 60/75 kWh jump in your example.Every pack has maybe 10% margin built into it, so eating into that today (via range increases) means it's not available to make up for battery degradation tomorrow. My 4-year-old EV still has its original range(s) and 100% SOH, but that's surely because it is slowly consuming the margin built into the pack.@Matt Posky: Not everything is a conspiracy to get your credit card account, and the lengthy editorial about this has nothing to do with solid state batteries.
  • JLGOLDEN In order for this total newcomer to grab and hold attention in the US market, the products MUST be an exceptional value. Not many people will pay name-brand money for the pretty mystery. I can appreciate the ambition of selling $50K+ crossovers, but I think they will go farther with their $30K-$40K offerings.
  • Dukeisduke They're where Tesla was when it started - a complete unknown. I haven't heard anything about a dealer network. How are they going to sell these? Direct like Tesla? Franchises picked up by existing new car dealers?