GM reveals the all-new 2018 Terrain to be built in Mexico

9 January, 2017

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General Motors Co. introduced the all-new 2018 Terrain whose production will be shifted from Canada to Mexico in order to expand production of the Ontario plant’s Chevrolet Equinox.

The Detroit-based company currently makes both vehicles at Ingersoll, Ontario. GM showed the new upscale Terrain for the first time last night on the eve of the Detroit auto show.

GM's Equinox and Terrain will go on sale as redesigned models in the first quarter and this summer, respectively, as small SUVs are a booming segment of the market and a big moneymaker for the company. That's why the automaker decided to increase output from one factory to three -- adding the vehicles at two existing facilities in Mexico, according to a GM spokesman.

GM sees growth for both vehicles. The automaker predicts the market for small SUVs will expand 10 percent during the next five to six years.

Terrain customers can choose from three different turbo-charged engines GM says can deliver strong acceleration with good fuel economy. The Terrain also has 4G wireless capability, a Wi-Fi hotspot and safety features including Forward Collision Alert that warns drivers of an impending crash, Lane Keep Assist with Lane Departure Warning and a Rear Cross Traffic Alert camera.

Some of the added production in Mexico is earmarked for overseas. That’s partly because of Mexico’s 44 free-trade deals with other countries, which allow GM to export vehicles tariff-free to markets where it doesn’t have similar agreements, including Brazil, Colombia and the European Union.

In late 2014, GM announced it would invest US$ 5 billion in new plants in Mexico by 2018, creating 5,600 jobs. The Equinox and Terrain facilities, which also make other models, are roughly US$1 billion of that. In 2015, GM said it is investing US$ 5.4 billion in plants in the U.S.

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