The Chevy Equinox is a little thin on the ground.
General Motors is starting to feel the squeeze from a labor strike in Canada as supplies of one of its hottest-selling models begins to dry up at dealerships across the United States and Canada.
The inventory shortage stems from a strike that started at GM's CAMI production plant, which makes the Chevrolet Equinox, in Ingersoll, Ontario, last month. Workers there were protesting GM's decision to shift production of the Equinox's platform mate, the GMC Terrain, from Canada to Mexico.
So far unable to settle the labor dispute, GM ramped up production of the Equinox at two of its Mexico plants to supplement supply lost by the CAMI strike. However, that appears to be a losing battle with inventories of the Equinox shrinking to 43,453 units, or a 41-day supply, at the start of October. In comparison, dealers had 74,400 units of the Equinox on hand, equivalent to a 66-day supply, during the month of June.
"That's going to be hard on Equinox to compete on such a limited quantity in such a hot segment," Jessica Caldwell, senior analyst and director of pricing and industry analysis for edmunds.com, told Automotive News. "We would expect sales to pick up in the last quarter of the year."
The Equinox is GM's second-best selling nameplate. So far this year U.S. sales are up 22 percent to 212,735 units. Last month sales spiked 80 percent to 27,512 units. In Canada, Equinox sales are up 27 percent for the year.