Low Supply, High Demand for GMC Terrain and Chevrolet Equinox I-4 Models

The Chevrolet Equinox and GMC Terrain have been a recent hit for General Motors – especially four-cylinder models because of fluctuating fuel prices. Unfortunately, the supply has not met the demand, due in part to a short supply of components related to the 2.4-liter engines over the past two months.

The automaker told dealers that the supply issue is temporary, but didn’t say when the shortage is expected to be over. GM spokesman Jim Cain told Automotive News that “it was a Tier 2 supplier problem” related to components used in the direct-injection 2.4-liter I-4, but not the engine itself.

"It's a function of a strong industry, a hot vehicle and very robust demand for the four-cylinder model," Jim Cain wrote in an e-mail to Automotive News. "We're working with our suppliers to increase deliveries of key components" to meet demand. GM also put “temporary order limits” on the four-cylinder models.

Last year four-cylinder Equinox and Terrain crossovers accounted for 87 percent of sales; last month four-cylinder models accounted for 79 percent of sales despite increased demand over V-6 versions. According to Automotive News, dealers are having to order more Equinox and Terrain crossovers with the less-economical 3.0-liter V-6 than they would like. To help move these less-popular powertrains, V-6 Terrain and Equinox models currently have $1000 in incentive cash on the hood.

Cain told Automotive News that both models are selling well: last month four-cylinder Equinoxes sold in an average of 30 days and four-cylinder Terrains selling in an average of 44 days; six-cylinder models Equinox and Terrain models sold in 39 and 49 days, respectively.

Source: Automotive News (subscription required)

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