GM Dealer Inventories Surge to 8-Year High

Stockpiles of unsold General Motors Co. vehicles in the U.S. have ballooned to nearly 1.9 million units, their highest level since February 2008.

Automotive News says inventories have climbed 28% in just the past five months in spite of hefty sales incentives. GM dealers are sitting on at least twice the normal supply of some models.

Still, GM’s production in North America has grown year on year by 14% in October and 18% in November. The company says the increase reflects the launch of new models. But AN warns the glut will soon test GM’s resolve to match production with demand rather than add sales incentives and crank up low-margin fleet sales.