Electric Cars

General Motors is set to implement a significant powertrain change for its 2027 Chevrolet Equinox and GMC Terrain models. Both popular SUVs will abandon the continuously variable transmission (CVT) in favor of a conventional eight-speed automatic gearbox. This decision, backed by a substantial investment in GM's Toledo Propulsion Systems facility, signals a shift in the manufacturer's approach to powertrain offerings and reflects a growing trend within the automotive industry to move away from CVTs. This change promises to enhance the driving dynamics of these vehicles, offering a more familiar and potentially more engaging experience for consumers.

The move away from continuously variable transmissions marks a notable evolution in GM's vehicle strategy. The introduction of an eight-speed automatic transmission across all 2027 Chevrolet Equinox models, and consequently the GMC Terrain, will provide a more conventional and potentially more satisfying driving experience. This strategic shift is supported by a significant investment in the Toledo Propulsion Systems facility, ensuring the infrastructure is in place to produce the new transmission variant. This upgrade is anticipated to be a key factor in improving the overall performance and market appeal of these vehicles, aligning them with consumer preferences for traditional automatic transmissions.

The Shift to Eight-Speed Automatic Transmissions

General Motors is implementing a significant change for its 2027 Chevrolet Equinox lineup, replacing the continuously variable automatic transmission (CVT) in front-wheel-drive models with a more traditional eight-speed automatic. This decision, confirmed by GM’s official vehicle order guide, will standardize the transmission across all Equinox variants, as all-wheel-drive models already utilize an eight-speed unit. This strategic shift is bolstered by a substantial $39 million investment in GM’s Toledo Propulsion Systems facility, specifically aimed at increasing capacity and introducing the new transmission variant. Consequently, the GMC Terrain, which shares mechanical underpinnings with the Equinox, will also see its front-wheel-drive versions equipped with the new eight-speed automatic, marking an end to the CVT era for both popular SUVs.

The integration of the eight-speed automatic transmission is a direct response to a broader industry movement away from CVTs, which have often been criticized for their less engaging driving feel and distinct engine noise characteristics. This upgrade is expected to deliver a more refined and responsive driving experience for Equinox and Terrain owners. Ohio representative Elgin Rogers (D-Toledo) highlighted the importance of the Toledo facility investment, noting its role in facilitating this transition and supporting the production of a new transmission type. Beyond the powertrain enhancements, the 2027 Equinox is anticipated to feature minor cosmetic updates, such as changes in exterior color options and interior stitching, indicating a focus on both mechanical improvements and subtle aesthetic refinements to maintain its competitive edge in the compact SUV segment.

The Evolving Landscape of Transmission Technology

The automotive industry is witnessing a gradual decline in the adoption of continuously variable transmissions (CVTs) by major manufacturers, as evidenced by GM's decision to replace them with traditional eight-speed automatics in the 2027 Equinox and Terrain. This trend is not isolated to GM; Nissan, a long-standing proponent of CVTs, recently opted to replace the CVT in its refreshed 2025 Murano with a conventional nine-speed automatic. While CVTs were initially lauded for their potential to enhance fuel efficiency and smooth out acceleration, their distinctive operational characteristics, particularly the "rubber band" effect and the sustained engine drone at higher RPMs, often proved unpopular with drivers accustomed to the distinct shifts of geared transmissions. Despite these criticisms, some manufacturers, like Subaru, have remained committed to CVT technology, leveraging continuous development to improve their performance and driver acceptance.

Historically, CVTs were introduced as an innovative solution to optimize engine performance and fuel economy by maintaining the engine at its most efficient operating point. The first production car in the United States to feature a CVT was the 1989 Subaru Justy GL, showcasing the early adoption of this technology. However, the driving experience associated with CVTs, characterized by a constant engine speed during acceleration rather than the progressive revving and shifting of traditional automatics, often alienated a significant portion of the driving public. This divergence from conventional driving dynamics, coupled with advancements in multi-speed automatic transmissions that offer both efficiency and a more engaging feel, has led many automakers to reconsider their transmission strategies. The move by GM and Nissan reflects a collective pivot towards geared transmissions, aiming to meet consumer expectations for responsive acceleration and a more familiar, satisfying driving experience, even as the pursuit of fuel efficiency remains a critical design objective.

The collaborative endeavor between electronics giant Sony and automotive powerhouse Honda, operating under the banner of Sony Honda Mobility (SHM), has reached a pivotal juncture. The joint venture has officially ceased the development and impending launch of its Afeela brand electric vehicles, including a sedan and an SUV. This significant decision arises from Honda's recent comprehensive review and subsequent alterations to its overarching electric vehicle strategy, which have fundamentally reshaped the operational blueprint for SHM.

Details of the Discontinuation and Future Outlook

In a joint statement issued by Honda and Sony on March 25, 2026, the companies confirmed the halt in production for both the Afeela 1 sedan and the planned electric SUV. This move is a direct consequence of Honda's March 12 announcement regarding its revised electrification strategy, which necessitated a re-evaluation of SHM's business framework, particularly concerning the utilization of Honda's technologies and assets. Pre-production for the Afeela 1, originally slated for customer deliveries later this year with an initial price of $102,900 for the Signature trim and a more accessible $89,900 Origin model planned for 2027, had already commenced at Honda's East Liberty Auto Plant in Ohio. The abrupt termination at such an advanced stage underscores the profound impact of Honda's strategic shift. While the Afeela vehicles are no longer moving forward, Sony and Honda affirm their continued partnership. They are committed to re-evaluating SHM's strategic direction and intend to reveal their mid-to-long-term positioning and contributions to the future of mobility at the earliest opportunity.

This development sheds light on the dynamic and sometimes volatile landscape of the electric vehicle industry. For companies like Honda, reassessing and adapting their EV strategy is crucial in a rapidly evolving market. The decision to discontinue products already in pre-production highlights the significant challenges and financial risks involved in pioneering new automotive ventures. It suggests a pragmatic approach to cutting potential losses and realigning resources with more viable or strategically sound projects. This could pave the way for future innovations from the Sony-Honda partnership, albeit in a different form, emphasizing resilience and adaptability in the face of market shifts.