Chevrolet Faces Oversupply of Equinox in the US

Back in 2020, Chevrolet announced that the awaited refresh of the 2021 Equinox will be delayed until the next model year due to pandemic-related delays. It joins other Chevrolet models, the Traverse and Silverado, whose launches have also been pushed back by a full year. However, it looks like trouble is brewing for the Equinox.

In an article shared by GM Authority, which cited sources privy to company operations, the current national inventory for the 2021 Equinox is at a 71-day supply. It is not as bad as the 28-day supply of the Blazer that indicates an inability to meet demand. However, an inventory that goes beyond the ideal 60-day supply target suggests that there may be an oversupply, low demand, or a mix of both.

Based on the latest numbers, Chevrolet sold a total of 270,994 Equinox units in the United States last year. It’s the second-highest seller from Chevrolet and the whole General Motors portfolio. But while this may look good, it’s actually 22% lower than the model’s 2019 sales. GM thinks the reason behind this drop is because buyers are waiting for the refreshed Equinox, which is expected to arrive in the second half of this year.

This updated model will feature more luxurious RS and Premier trims as well as a more powerful 2.0-liter turbocharged four that makes 237 horsepower and 203 lb-ft of torque as an option, the same engine that powers the Cadillac XT4.

Another possible reason behind the decline in Equinox’s sales is the growing demand for the Blazer, which recorded a 183% increase in sales just in the first six months of 2020. Both models are similar in size, but the Blazer is newer, delivers more power, and has a better set of equipment than the Equinox.

If Chevrolet does not find an answer to this internal competition, oversupply and low demand for the Equinox may just get worse, unless the upcoming 2022 version is able to attract buyers away from the Blazer.