Some analysts are concerned that General Motors is falling back into old habits by producing far more vehicles than the market can support. Bloomberg is reporting that the automaker's dealers are currently sitting on a 122-day supply of pickup trucks. That's more than twice the average for most models.
Meanwhile, competition like the Ford F-150 hangs around its lots for about 79 days before finding a home. GM enjoyed similar performance between 2002 and 2010, when its Silverado and Sierra trucks averaged 79 days on the lot, but now says that the company is producing sufficient volumes to meet demand and that somewhere between 100 and 110 days will be the new normal moving forward.
But analysts interviewed by Bloomberg disagree, saying that a dated product, a slow economic recovery and overzealous production has led to an overstock scenario and that the automaker hasn't learned any of the painful lessons of its bankruptcy. GM counters by suggesting that trucks require a larger dealer supply because of the variety of weight classes, cab and bed configurations and engine options.