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 5:11PM
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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 4:59PM
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The economy sucks. Who the hell has money to buy a new truck?
Mar 4, 2012 5:15PM
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The Government owns stock in GM a Solar Co and some Wind Generating Cos.  They also own two great financial companies that loan money on mortgages. WOW!  Our Government sure makes good investments with other peoples money.

 

They also borrow out on the SS money and less than 2% on Your money.  At least they say they pay interest on it, with more printed money.

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 3, 2012 6:16AM
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If GM will make a small lightweight truck with a diesel engine I'll be a customer. I don't need a 2 ton monster just something small and well made.
Mar 2, 2012 9:34PM
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It's hard to buy a truck on a inter-galactic thugs wages these days!!!!
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 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 5:24PM
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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 5:47PM
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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 5:29PM
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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 6:15PM
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Just bought a new F250 4X4  crew cab XLT diesel  I have never owned anything but GM before today and I am 63 years old probably owned 25 new GM's over the years. Enjoy all your free government money after screwing the stockholders and non union employees. My paltry little sale of 1 unit won't change either company's bottom line one wit .... but it changes my 'feel good' bottom line to the plus side beyond description.
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 3, 2012 5:49PM
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TucsonTom The Silverado contains 93% parts from US/Canada and 5% from Mexico.  Where do you get most of the parts come from Mexico?  Read the Window sticker for the truth.

 

The Silverado is more North American AND American than the Tundra by a long shot.  The Tundra isnt even 75% US/Canada parts.

Mar 2, 2012 6:00PM
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What is a foreign car these days????? A ford built in Windsor Canada????
a Chevy built in Mexico???????
or a Toyota made in Tennessee?????
 I have a problem with car companies out sourcing jobs outside of America!
 yet Toyota is doing well out sourcing to America!!!
  Either way, If they employ Americans, GREAT!!!
 If you send our jobs elsewhere! @#*^ yourselves!!!!!


Mar 2, 2012 5:59PM
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obozos pumped up union thug company with my money lined the pockets of union thug bosses and unions pieces of crap
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 7:30PM
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I know this will make the majority of GM lovers mad, but the following is the truth.  If you don't believe me, check it out.

 

GM's vehicle sales results in 2011 were heavily supported by the highest rebate/marketing incentives per vehicle sold in the industry.   GM recently lowered their incentives 19%, however  the residual results was only approx. 1% increase in sales in February.  That's the primary reason GM Dealer lots are stuffed with product, GM will again be required to raise their marketing sales incentives again to move their excess product.   

Mar 2, 2012 5:51PM
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I would really like to know how much of "MY" tax money these unemployed foreign car loving Americans spent individually to help save the American auto industry. Yes Ford was smart and borrowed money before the crash....BRAVO....ho​wever we all need Ford, Chrysler, and GM to prosper for our economy. These are all good companies building better and better quality products. Pick you out a new American (based company) vehicle that you can afford and buy it! That's what you can do to help the US economy and create more jobs where the buck stops in the good ol USA!Hot.
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.

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