There has been a taxpayer auto bailout because of the economic climate of recession, which, reports Automotive News, doesn’t give comfort to the auto makers. Now it appears like low factory inventory is what most companies live by. Dealers do not have nearly enough cars they need to sell to the customers wanting increasingly more. An online survey found that more than 160 of 244 responding dealers – representing the spectrum of automotive brands – had too few vehicles to sell. Many of those responding admitted to a loss in sales.
Dealers losing buyers over low inventory
Numerous dealerships are reporting that motivated buyers are leaving discouraged over low inventory. Much of the auto sales comes from GMCs, Hondas, Hyundais and Chevys although there seems to never be enough. Automotive News had a dealer tell them that if there were more cars, they’d sell more cars but automakers “have driven supplies too low” for selling. General Motors, Ford and Chrysler are trying to get more money with less inventory making cars like the GMC Terain extremely hard for auto dealers to get a hold of. Dealers are worried that that automakers may be cutting too much.
Factories working on it
Overproduction might be really bad for an automaker trying to stay in business. Despite the fact that helping dealers is really essential, it is also essential to keep them going. Dealers are nervous too. They’d rather sell all the cars than get more cars than they can sell. Right now is a time that we need to move forward from the high incentive and low resale value cars. Automotive News reported this after talking with Tom Henderson. Some adjustments are necessary, of course. GM has been changing a part of a plant in Ingersoll, Ontario to create more bodies showing that Chevrolet Equinox and GMC Terrain need more cars to meet demand. Paint and finish on these cars is done in one more plant two hours east since there isn’t room for GM to finish the cars in the same place.
Additional reading
Auto News
autonews.com/article/20100823/OEM01/308239949/1262
