Facing a shortage in supply, GM has restricted dealer orders to better ration its bestsellers. Unfortunately, this has caused many dealers to fill their inventory with the 3.0-liter V6 models, which are less desirable to consumers in the face of rising costs at the pump. Currently, four-cylinder models account for 80 percent of Equinox and Terrain sales.
GM spokesman Jim Cain explained that “temporary order limits” had to be placed on the Equinox and Terrain. “It’s a function of a strong industry, a hot vehicle, and a very robust demand for the four-cylinder model.We’re working with our suppliers to increase deliveries of key components.”
According to GM, the supply constraints will only be temporary until the supplier adjustment has been resolved. From the dealer’s perspectives, it has been difficult to shift the V6 models as the national average has risen to $3.79/gallon of gas. For Herb Chambers Chevrolet-Cadillac of Danvers,MA, general sales manager Eduart Lela said, “I cringe when I have to order a six.”
In an effort to work with the dealers, GM offers a $1,000 discount for each V6 Equinox or Terrain moved in order to lift sales.
GALLERY: Chevrolet Equinox
[Source: GM Inside News]