Chevrolet Equinox Sells Fast But Loses Money

Chevrolet is trumpeting the fact that the Chevrolet Equinox is the fastest-selling compact crossover, based on the average time spent on dealer lots. In November, Equinox averaged just 15 days to turn, half the time of other vehicle in the segment.

Surprisingly, quick sales do not equate to automatic moneymakers for the Equinox. You’re probably going to find a deal on a new Chevrolet Equinox in the near future. The base LS model starts at $22,745 with an invoice of $21,608 and an average selling price of $22,230. Its average selling price is $378 below invoice, according to Edmunds.com.

Does this sound like the old GM way of doing business? Here’s a quote from a news release announcing the hot sales: “To meet continued consumer demand for the Equinox, Chevrolet has increased production capacity three times since 2009. With the CAMI facility in Ingersoll running at full capacity, Equinox regular production began at the Oshawa Assembly Plant in late September.”

Granted, most dealers sell new cars at a low profit over MSRP because they make money in other ways, but can a car manufacturer continue to succeed when one of its hottest vehicles (it has 10.6 percent of the compact crossover market) has to be sold below invoice?