GM to Move Production of GMC Terrain to Mexico from Canada

General Motors Co. will move production of its revamped GMC Terrain to Mexico from Canada and expand production of the Ontario plant’s Chevrolet Equinox, reflecting the growing popularity of compact sport utility vehicles.

The Detroit-based company currently makes both vehicles in Ingersoll, Ontario. GM showed the new upscale Terrain for the first time Jan. 8 on the eve of the Detroit auto show.

GM has a lot riding on the Equinox and Terrain, which go on sale as redesigned models in the first quarter and this summer, respectively. Small SUVs are a booming segment of the market and a big ...