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

Steph Willems
by Steph Willems

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]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
2 of 11 comments
  • TomLU86 TomLU86 on Oct 06, 2017

    Good points John Taurus. On the other hand, by several measures, internal and external, CAMI has done an excellent job, and is one of GM's better plants. The vehicle they make is a good seller. So, their reward is....lay-offs! Also, recall that the govt of Canada, as well as Ontario, helped to bail GM out. So, as a matter of principle, at the very least, GM should preserve what they have in Canada. CAMI was not making Azteks that no one wanted. They were not making crappily-built cars. And yet..."it's the business". BTW, GM CEO made $26 million. Top 4 execs probably pull another $30-$40 million between them. Toyoda runs a better company and he makes LESS THAN $3! Let's outsource GM's top mgt to Japan, lol. These things are easier to accept when a company makes it on its own. GM owes it's existence to the US and Canadian, and even Ontario govt.

  • Pacificpom2 Pacificpom2 on Oct 06, 2017

    Is Mexico building the RHD version?

  • Dave Holzman A design award for the Prius?!!! Yes, the Prius is a great looking car, but the visibility is terrible from what I've read, notably Consumer Reports. Bad visibility is a dangerous, and very annoying design flaw.
  • Wjtinfwb I've owned multiple Mustang's, none perfect, all an absolute riot. My '85 GT with a big Holley 4 barrel and factory tube header manifolds was a screaming deal in its day and loved to rev. I replaced it with an '88 5.0 Convertible and added a Supercharger. Speed for days, handling... present. Brakes, ummm. But I couldn't kill it and it embarrassed a lot of much more expensive machinery. A '13 Boss 302 in Gotta Have It Green was a subtle as a sledgehammer, open up the exhaust cut outs and every day was Days of Thunder. I miss them all. They've gotten too expensive and too plush, I think, wish they'd go back to a LX version, ditch all the digital crap, cloth interior and just the Handling package as an add on. Keep it under 40k and give todays kids an alternative to a Civic or WRX.
  • Jpolicke In a communist dictatorship, there isn't much export activity that the government isn't aware of. That being the case, if the PRC wanted to, they could cut the flow of fentanyl down to a trickle. Since that isn't happening, I therefore assume Xi Jinping doesn't want it cut. China needs to feel the consequences for knowingly poisoning other countries' citizens.
  • El scotto Oh, ye nattering nabobs of negativism! Think of countries like restaurants. Our neighbors to the north and south are almost as good and the service is fantastic. They're awfully close to being as good as the US. Oh the Europeans are interesting and quaint but you really only go there a few times a year. Gents, the US is simply the hottest restaurant in town. Have to stand in line to get in? Of course. Can you hand out bribes to get in quicker? Of course. Suppliers and employees? Only the best on a constant basis.Did I mention there is a dress code? We strictly enforce it. Don't like it? Suck it.
  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
Next