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GM to Trim N. American Production
General Motors Co. says it will make unspecified reductions to output in North America and adjust its marketing in response to bloated inventories of fullsize pickup trucks.
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General Motors Co. says it will make unspecified reductions to output in North America and adjust its marketing in response to bloated inventories of fullsize pickup trucks.
GM reports it had nearly 245,900 unsold Chevrolet Silverado and GMC Sierra big pickups on Nov. 30. That represents a 139-day supply compared with 110 days a month earlier. A 60- to 65-day inventory is considered ideal.
The company's total volume of unsold vehicles reached a 106-day supply at the end of November.
The Wall Street Journal estimates the value of GM's unsold Silverado-Sierra stockpile at $7.5 billion. The company says its supply of big pickups could surpass 220 days by year-end.
U.S. Silverado sales fell 10% to 30,700 units last month compared with 9% growth in the overall fullsize pickup truck market. GM says its sales lagged because it chose not to match the big discounts competitors were offering on 2012 trucks.
The company also amassed an unusually large number of big pickups to cover the changeover to the next-generation Silverado and Sierra due in mid-2013.
The Journal reports that the company will add a third week to the annual two-week holiday shutdown at its plant in Lordstown, Ohio, that builds the Chevrolet Cruze compact car.
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