GM Dumps the CVT in Equinox and Terrain — What This Means for Drivers as Prices Likely Rise

General Motors is making a move that a lot of drivers have been asking for — and it’s happening in two of its most important vehicles. The CVT is on its way out of the Chevrolet Equinox and GMC Terrain, replaced by a traditional eight-speed automatic. That sounds like a win, but like most things in today’s auto industry, there’s more going on beneath the surface.

For buyers and enthusiasts, this isn’t just a minor update. It’s a signal that GM is adjusting course in one of the most competitive segments in the entire market — and potentially setting up changes that could affect pricing, efficiency, and long-term ownership.

A Quiet but Important Mechanical Shift

The Chevrolet Equinox and GMC Terrain may not dominate headlines like some rivals, but they are critical players for GM. These compact crossovers compete directly with heavyweights like the Honda CR-V and Toyota RAV4, which means every detail matters.

For the 2027 model year, GM is preparing to eliminate the continuously variable transmission from front-wheel-drive versions of both vehicles. In its place will be an eight-speed automatic, the same type already used in all-wheel-drive variants.

That change might seem simple, but it’s been a long time coming. CVTs have been widely criticized by drivers for their driving feel, lack of engagement, and sometimes questionable durability. Moving away from them is likely to resonate with buyers who prefer a more traditional driving experience.

Why GM Is Making This Move Now

The timing here isn’t random. The compact SUV segment is one of the toughest battlegrounds in the industry, and small differences can influence buying decisions.

GM appears to have finally figured out how to package the eight-speed automatic into front-wheel-drive versions of these crossovers. That alone suggests this change was technically challenging or previously not cost-effective.

At the same time, consumer sentiment has been shifting. There’s been growing pushback against CVTs, especially among drivers who value responsiveness and predictability. GM’s decision looks like a direct response to that pressure.

The Trade-Off Nobody’s Talking About

There’s a catch, though — and it’s one that matters.

Switching from a CVT to a traditional automatic transmission can impact fuel economy. CVTs are often used specifically to maximize efficiency, especially in vehicles designed for mass-market appeal.

While official numbers for the updated models haven’t been released yet, it’s reasonable to expect changes in fuel economy ratings. That could affect operating costs over time, particularly for buyers who prioritize efficiency.

So while the driving experience may improve, the long-term cost equation could shift in ways that not every buyer will appreciate.

The Rest of the Updates: Small but Strategic

Beyond the transmission change, the updates for 2027 are relatively minor — but still worth noting.

The Equinox will receive a new exterior color called Autumn Harvest Metallic, replacing the outgoing Cacti Green. Interior options are also being simplified, with RS trims now limited to Torch Red accents and the removal of Santorini Blue stitching.

There’s also a new technology feature on the way. A connected camera system will be added as part of a package, allowing owners to monitor their vehicle’s surroundings through a mobile app. It’s a feature that reflects a growing trend toward increased connectivity and remote monitoring in modern vehicles.

For now, it’s unclear whether the GMC Terrain will receive the same camera system.

Pricing Pressure Is Coming

Even though the updates may look modest on paper, there’s one thing buyers should be prepared for — higher prices.

The current Equinox ranges from just under $29,000 to the mid-$30,000 range, while the Terrain stretches from just over $30,000 to nearly $42,000. With new features and mechanical changes, increases for the 2027 model year are expected.

That puts additional pressure on these vehicles in an already competitive segment. Buyers have more choices than ever, and price sensitivity remains high.

Why This Matters for Drivers

For everyday drivers, this shift away from CVTs is likely to be welcomed. A traditional automatic transmission generally offers a more familiar and engaging driving experience, especially in stop-and-go traffic or during acceleration.

It also aligns with what many enthusiasts have been saying for years — that driving feel still matters, even in practical vehicles like compact crossovers.

At the same time, the potential trade-offs in fuel economy and pricing can’t be ignored. Buyers may gain a better driving experience, but they could pay more upfront and at the pump.

A Reflection of a Larger Industry Trend

This move by GM fits into a broader pattern across the industry. Automakers are constantly balancing efficiency, cost, and driver satisfaction, and those priorities don’t always align.

For years, CVTs were pushed as the solution for maximizing fuel economy. Now, as consumer preferences evolve, some manufacturers are reconsidering that approach.

GM’s decision suggests that driver feedback is starting to carry more weight — at least in certain segments.

The Bigger Question Moving Forward

On the surface, ditching the CVT looks like a clear win. But when you look closer, it’s part of a more complicated equation involving cost, efficiency, and market positioning.

For drivers, the real question is whether this change delivers enough value to justify what could come with it — higher prices and potentially lower fuel economy.

Because in a segment where every dollar and every mile per gallon matters, even a “simple” transmission swap can have bigger consequences than it first appears.