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Opposite World: GM dealers reportedly fretting over too tight crossover and truck inventories
Buick Enclave - Click above for high-res image gallery
In these dark days of bankruptcy proceedings, ever-dwindling sales figures and decades of receding market share, General Motors' base of dealerships certainly has plenty of things to keep it up at night. You may be surprised to hear, though, that a dwindling supply of available inventory is one of the major problems some dealerships are currently reporting. We're not shocked to hear there's only a six-day supply of Chevrolet Camaro models on hand, but dealers are also seeking remedies for shortages of Buick Enclaves, GMC Yukon SUVs and extended-cab Sierra pickups, as well as limited supplies of Chevrolet Silverado trucks. For a company that has historically had an unhealthy attachment to high inventories across their brands, this is an unusual development indeed.
GM is aware of the shortages and Mark LaNeve, vice president of vehicle sales, service and marketing, tells Automotive News that the shortage is a normal part of the adjustment process from the old days of carrying a 120-day supply of vehicles to today's goal of a leaner 75-day supply. The General's messenger further suggests that dealers trade inventory with each other to bolster inventory until the automaker is ready to rekindle its assembly lines beginning on Monday, July 13 after the company's extended summer shutdown.
Gallery: 2008 Buick Enclave
[Source: Automotive News - sub. req'd]
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Reader Comments (Page 1 of 2)
Mike P. 7:07PM (7/06/2009)
Our local Chevy/GMC/Buick/Cadillac/"Pontiac" (that's a bit ridiculous, isn't it?) dealer's lot is looking a little barren lately... more inventory spots are empty than filled. Most of the cars that are sitting around are Aveos/G3s, and some Cobalts/G5s. Go figure. But the trucks, SUVs, and crossovers have moved. A couple sedans sitting around including one very, very tempting Pontiac G8 GT in red.
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inteller 10:57PM (7/06/2009)
oh how soon we forget high gas prices.
UtahAlumnus 7:13PM (7/06/2009)
Saw a webcast interview with LaNeve, seemed like a sensible guy.
Personally the Equinox can't come soon enough.
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Tagg 10:07PM (7/06/2009)
Unfortunately the Terrian will have to come too. I've seen a couple Terrains here in the Detroit area and it hurts the eyes.
dsuupr 7:26PM (7/06/2009)
My local Chevy dealer will run out of trucks by the end of this week if they don't get more inventory. They don't have a Camaro or Suburban and are VERY low on Malibus, Traverses and Tahoes inventory issues.
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Kumar 11:18AM (7/07/2009)
So yes, these vehicles are in short supply, but are they selling at retail, or at a reduced price to move them off the lot and keep GM afloat?
We all need to hope that GM doesn't revert to the old GM and crank out tons of SUVs when people start clunking their old cars for giant SUVs that are on sale, even though they are a 2009 MY. When they do start producing again, it should be in lower quantities with no incentives, to gauge the real demand before they end up right back where they started...a vast oversupply.
It would be good to see a change in the way lots are run in the future as a workaround to this so called problem. If there were regional staging lots to store cars, then dealers could roll with less inventory on site if they know they could have the car you wanted delivered in 1 to 2 days. This could cut out some of the waste of scattering them to every dealer, only to truck it to another one a week later.
MoonRover 8:14PM (7/06/2009)
The local GM dealer in my home town has next to nothing, how do you sell what you don't have. GM needs to get vehicles to these dealers fast.
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Patrick 9:14PM (7/06/2009)
A brief period of scarcity might be good for business, giving the perception of customer demand. Might be good for transaction prices while clearing out a few hangar queens at the dealerships.
It may not be an accident or mistake.
Dan 10:18PM (7/06/2009)
In normal times, sure.
In a terrible economy with GM in the wake of bankruptcy, it gives the perception of a dead brand.
Nightcrawler 11:38AM (7/07/2009)
And with Cash for Clunkers about to start, scarcity isn't what you want at the moment. GM wants to have cars on the lot to get their fair share of the clunkers pie.
In theory, since cash for clunkers is supposed to be about fuel economy, the fact that trucks are in short supply wouldn't seem to be a big deal. But the way the clunkers law is written it encourages truck drivers to trade in their old truck for a new one, because the mpg improvement requirements are much less strict if you are buying a truck.
cdwrx 4:23PM (7/07/2009)
Perhaps they're producing the correct number of vehicles and need still fewer dealers.
anon 8:19PM (7/06/2009)
yeah remember usa is not the world, gm is actually doing quite well in places like china and mexico.
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-DUA- 8:58PM (7/06/2009)
75 day inventory target?
Some cars actually have a waiting list.
What's wrong with a six-day supply?
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alex 9:21PM (7/06/2009)
your local dealer won't have what you want.
Mr.Oak 1:28AM (7/07/2009)
Are you going to pay to fly the cars to their destination? Including Hi.?
Rich 10:00AM (7/07/2009)
Mr. Oak: That's the general idea, yes. Only not flying. Spec it up on GM's Website choosing a model from stock or built to order for no extra charge, then it gets dumped in my driveway.
New cars are treated like used cars; and after sitting on some ropey dealer's lot for four months (old GM) or two and a half months (new GM), it's used. No wonder they depreciate so bloody quickly.
This is why some people will only ever buy used cars.
Matt 9:26PM (7/06/2009)
Well of course there is a shortage. When you build the absolute finest CUVs in America, people will buy them up.
And the fantastically good 2010 Equinox is on the lots. This will be hugely successful for GM.
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tuxchown 1:40AM (7/07/2009)
Oh come on. Now you sound like the Toyota fanboys. ;)
Tagg 10:06PM (7/06/2009)
Of course there's a shortage. When you idle nearly ever plant for weeks upon weeks you will eventually run out.
Also, GM retirees are buying new cars now fearing they may lose their employee pricing in the future.
Nice try Matt, but good job posting on something not Ford related.
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Matt 12:17AM (7/07/2009)
What do you mean "nice try"?
The Traverse is walking all over the insanely overpriced (and completely pointless) Flex.
It took the Ford xB ONE WHOLE YEAR to get the Flex sales to a dismal 4500-5000 units. It took GM FOUR MONTHS to get the Traverse sales to that number (December 2008 - 4935 units)
Good thing Ford spent all of that money making the Flex something nobody wants to buy. Shocking another D3 platform failure. I'm sure that will pay off for them.