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General Motors’ new Chevrolet Equinox and GMC Terrain crossovers are selling like hotcakes, but they’re on the verge of outpacing supply — inventory levels are approximately 60,000 units below what GM would like. To cope, the automaker is looking for ways to boost production of the CUVs — again.
One solution already being implemented is to increase production at the factory in Ingersoll, Ontario, Canada, which manufactures the two crossovers. A third shift was added to help increase output, and GM is upgrading the facility to allow it to crank out another 40,000 vehicles annually. The renovations should be complete by August.
Earlier this year, Mark Reuss, president of GM North America, noted the automaker “sits with assets that aren’t utilized.” Sure enough, another solution under consideration is to use the now-vacant facility in Spring Hill, Tennessee, the former assembly point for the Chevrolet Traverse, and once the home of virtually all Saturn models. In order to save time, GM is considering installing a manual body shop in Spring Hill in lieu of the conventional automated lines. According to estimates, this process could save more than 20 months and $200 million in the tooling process.
GM is also facing shortages of the Buick LaCrosse, Cadillac SRX, and select truck models, but analysts suggest for cost reasons, the automaker is unlikely to expand production of these models to additional facilities.
Source: Detroit Free Press
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