General Motors is removing the continuously variable transmission, known as a CVT, from the 2027 Chevrolet Equinox and GMC Terrain. Starting with the 2027 model year, every version of both SUVs will come with an 8-speed automatic transmission as standard.
This is one of the biggest updates GM has made to these two popular crossovers in recent years. The Chevy Equinox is one of GM’s best-selling vehicles in the United States. Dropping a transmission that frustrated many buyers is a move that could win back customers.
CVT Was Only on Front-Wheel-Drive Models
In the current model, the CVT pairs with the Equinox’s turbocharged 1.5-liter four-cylinder engine. It makes 175 horsepower and 203 pound-feet of torque. The only way buyers could get an 8-speed automatic was to upgrade to all-wheel drive, which costs about $2,000 more.
That meant buyers who chose the more affordable front-wheel-drive model were stuck with the CVT. Many shoppers ended up paying more just to get the transmission they wanted.
Why GM Is Making the Switch
GM confirmed the transmission change but has not yet released full details. Fuel economy testing for the new setup is still underway.
The CVT has had documented problems, including fluid leaks. Consumer Reports also pulled its “Recommended” badge from the gas-powered Equinox. The move to the 8-speed automatic may help address those reliability concerns and improve overall buyer confidence.
Towing Gets a Big Boost
One of the clearest wins from this change is towing capacity. Right now, front-wheel-drive Equinox models can only tow up to 800 pounds. That is far less than the 1,500-pound rating available on AWD models.
With the 8-speed automatic, all front-wheel-drive versions are expected to match the 1,500-pound tow rating. That is nearly double what buyers get today. The GMC Terrain is expected to see the same improvement.
Fuel Economy: A Small Trade-Off
The CVT was designed to save fuel, especially in stop-and-go city driving. The 8-speed automatic matches the CVT on the highway at 29 mpg but trails by about 1 mpg in the city.
The combined rating drops from 27 mpg with the CVT to 26 mpg with the automatic. That is a small difference. Most buyers will likely accept it in exchange for a smoother and more traditional driving feel.
GMC Terrain Gets the Same Update
The CVT has been removed from the GMC Terrain’s lineup as well. Both the Equinox and Terrain share the same platform, the same engine, and now the same new 8-speed automatic transmission.
GM appears to be simplifying its production process by using one gearbox across the full lineup of both models. This makes parts and service easier to manage as well.
New Features Coming to the 2027 Equinox
The 2027 updates go beyond just the transmission. The 2027 Equinox gets an upgrade to its Safety and Technology Package, including a new Connected Cameras feature.
This lets owners use the myChevrolet app to view live footage from the vehicle’s 360-degree exterior cameras remotely. GM notes this feature will have late availability, meaning some early buyers may need a software update to activate it after purchase.
New Color and Interior Changes
On the outside, the 2027 Equinox adds a new color called Autumn Harvest Metallic, which replaces the outgoing Cacti Green. Inside, the Equinox RS trim will only come with Torch Red accent stitching. The Santorini Blue interior option is being discontinued.
Background: The CVT Only Lasted Two Years
General Motors introduced the CVT for the 2025 model year on front-wheel-drive Equinox and Terrain models. AWD versions always came with the 8-speed automatic. The CVT lasted just two model years before being replaced.
What Happens Next
Production of the 2027 GMC Terrain is set to begin in June at GM’s plant in San Luis Potosí, Mexico. The gas-powered Chevy Equinox is built at the same facility.
Pricing for the 2027 Equinox has not been announced yet. The 2026 model starts at $30,795 including destination charges. A small price increase is expected for the 2027 model year.
Stay updated on all 2027 GM news as pricing and full specs are confirmed closer to the on-sale date.
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