GM's sitting on a lot of trucks

The automaker has about 116 days of supply for pick-ups.

By Kim Peterson Mar 2, 2012 3:27PM
Most of the automakers had a huge February. Chrysler's U.S. sales were up 40%. Ford (F) sales rose 14%. Even Toyota (TM), still recovering from last year's Japanese tsunami, saw sales grow 8%.

But General Motors (GM) barely eked out a 1.1% increase. And that was good news -- analysts were expecting a drop by as much as 6% as GM pulled back on the incentives it offered to customers.

But are the company's inventory levels a concern?

The company's own sales statement shows that dealer inventories have soared to 667,000 vehicles. That's up 29% from a year ago and 59% from two years ago. (See this chart from ZeroHedge for a better view.)

The Wall Street Journal says that this is the wrong inventory, too. If you look at just the pick-up trucks waiting to be sold, GM has 116 selling days of supply. That's a lot of trucks sitting around when gas prices are skyrocketing.

And inventory is climbing. At the end of January, GM said its overall dealer inventory was at 619,455 vehicles.

GM seems to be happy with its car inventory levels at least. In a sales conference call Thursday, executives said overall car inventory was 245,000 units -- or about a 70-day supply. "I would say we're fairly comfortable with that right there," said sales chief Don Johnson.

If gas prices keep rising, though, GM may have to look at more incentives to clear out those trucks.
Tags: FgmTM
76Comments
Mar 2, 2012 5:47PM
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I Like my Ford F150 made right here in Kansas City, with no government bailout money and the corporate  profit stays here in the US does not go to Japan.
Mar 2, 2012 5:43PM
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own a ford and and chevy truck; one is a 2002 and the other is a 2003.  As of today, there has been one visit for repairs and that was covered by warranty at 80000 miles.  There won't be any other brands at my home.  Quality and service is really number 1 here.
Mar 2, 2012 5:42PM
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Charlie Reese wrote the most intelligent comment I think I've seen on these boards. We, the people, have the power to correct the problems of this country by correcting the the 545 people he mentioned. If you don't vote, shame on you. If you vote for the same old cronies, shame on you. Boot them out, all of them. Let's show them what this country really needs. A government of the people, by the people and for the people, not just the elite.
Mar 2, 2012 5:39PM
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GM is planning on shutting down their trucks lnes for up to five months to retool for a completely new truck line - as a conseqence they need to build up inventory because they won't be producing any during that time:)

 

I am sure they would have told Kim if they had been asked.

Mar 2, 2012 5:29PM
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Its amazing what people tell themselves to feel better about buying foreign made crap....Its sick and its costing this country dearly, just wait and see.....were already  forced to buy enough crap that isnt made here and when people have a choice they still buy it...IM PROUD TO SAY I DRIVE AMERICAN CARS AND MOTORCYCLES...

Mar 2, 2012 5:24PM
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Take your Toyota Junk, load it up with your crap and move to Japan! The plant is here but the money goes to them...Thats the root of the problem in this country is buying foriegn ****! I work as a manager in the Oilfield and not one Toycrapa will hold up to our use...Dont even make a diesel that will pull anything and they are the ugliest trucks on the road....
Mar 2, 2012 5:16PM
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They are still trying to get us to believe the federal government in all of it's wisdom (?) saved GM. They got rid of dealers that weren't Liberal supporters, that's about it. What psooible difference could that make? The union problem was not fixed, they just kicked the can down the street past the next presidential election. The auto worker unions are still over paid and under worked. Pensions and benefits are still out of control for unskilled labor. The Feds have the nerve to tell the union workers they built GM. Pretty funny for people working assembly line  jobs most anyone can learn in 30 minutes.
Mar 2, 2012 5:14PM
Mar 2, 2012 5:13PM
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To the person who si bragging about their Toyota truck.  Yes it is a very good truck, but your local and state gov't paid millions to the the Toyota plant there in Texas, so you are giving Toyota a supplement and tax funds.
Mar 2, 2012 5:11PM
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545 vs. 300,000,000 People
-By Charlie Reese

Politicians are the only people in the world who create problems and then campaign against them.
Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?
Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?
You and I don't propose a federal budget. The President does.
You and I don't have the Constitutional authority to vote on appropriations. The House of Representatives does.
You and I don't write the tax code, Congress does.
You and I don't set fiscal policy, Congress does.
You and I don't control monetary policy, the Federal Reserve Bank does.
One hundred senators, 435 congressmen, one President, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.
I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.
I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes.
Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.
What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The President can only propose a budget. He cannot force the Congress to accept it.
The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House now? He is the leader of the majority party. He and fellow House members, not the President, can approve any budget they want. If the President vetoes it, they can pass it over his veto if they agree to.
It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted -- by present facts -- of incompetence and irresponsibility. I can't think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.
If the tax code is unfair, it's because they want it unfair.
If the budget is in the red, it's because they want it in the red.
If the Army & Marines are in Iraq and Afghanistan it's because they want them in Iraq and Afghanistan ...
If they do not receive social security but are on an elite retirement plan not available to the people, it's because they want it that way.

Mar 2, 2012 5:09PM
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I said this a week or two ago when everyone was bally-hooing GM's profit numbers.   No interest unpaid loans (an unfair competitive advantage by the way) will only prop them up so long.  Excess inventory is a real issue.  It can cause production cuts which can cause lay-offs and cut-backs all along the supply chain.  it could create a temporary ripple effect on parts orders, employment, etc.

Eventually they are going to have to make products that people will buy in today's market.   Perhaps they should rethink those bonuses they annouced a week or two ago.   They may need the cash if they can't reduce field inventory.

Mar 2, 2012 4:59PM
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I really hope the govt wouldnt waste even more of our money on something as crappy as a gm made truck. They screwed the pooch paying for them once
Mar 2, 2012 4:59PM
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The economy sucks. Who the hell has money to buy a new truck?
Mar 2, 2012 4:58PM
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Love my Toyota Tundra built here in Texas and 6 years JD powers most dependable truck. And didn't get government bail out money...
Mar 2, 2012 4:44PM
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Shouldn't the government be buying pickups?

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