Hitting the sweet spot in the crossover market?
General Motors is investing $C90 million for what it says is a “substantial project” that includes the re-tooling of a bodyshop at its CAMI complex in Ingersoll, Canada, where the Chevrolet Equinox and GMC Terrain crossover models are built.
The planning and retooling work begins immediately and the project is due for completion in seven months. Then, an additional 40,000 units of annual capacity will be available for the popular compact crossovers for the Canadian and U.S. markets.
This is good news for potential customers as the 5-seat vehicles are in short supply, restricting choices.
In October, Chevy Terrain posted sales of almost 7,900 units, up a whopping 177% from the year earlier month. Equinox share in compact crossover segment is growing, having more than doubled in a year to 10% – the highest since August 2007.
The GMC Terrain model, newly added for 2010, sold almost 3,000 units.
When equipped with the new 2.4-liter direct injection Ecotec engine and six-speed automatic transmission, the Terrain is EPA-rated at 22 mpg in the city and a segment-leading 32 mpg on the highway (FWD model).
On the highway, the Terrain beats the 27-mpg rating of Honda CR-V, or the 28 mpg offered by the Ford Escape. It even beats the 31-mpg highway mileage of the Ford Escape Hybrid.
“This investment is an excellent example of what happens when you get the product right. If the product is right, everything else follows – increased production, increased employment and strong market demand,” said Arturo Elias, president, GM Canada.