Automotive News shows us that automakers are nevertheless shy about making cars despite the economic c climate of recession and the taxpayer auto bailout with it. Now it appears like low factory inventory is what most companies live by. Dealers don’t have nearly enough cars they need to sell to the customers wanting increasingly more. 160 of 244 dealers responded in a survey saying there weren’t enough vehicles to sell. This was supposed to represent all of the auto brands. Less sales were made because of this.
Low inventory hurts sellers
Numerous dealerships are reporting that motivated buyers are leaving discouraged over low inventory. Not enough GMCs, Hondas, Hyundais, Chevrolets or other cars are available, which constitutes a wide portion of the automotive spectrum. Evidently automakers “have driven supplies too low” making it difficult to sell the cars needed to keep up a flow of money. A dealer explained this to Automotive News. General Motors, Ford and Chrysler are trying to get more money with less inventory making cars like the GMC Terain difficult for auto dealers to get a hold of. Dealers do not like this cut from automakers.
Factories are trying to help
Helping dealers is a priority for automakers, but these very same automakers are cautious to avoid the overproduction that drove the industry to the gates of ruin. Dealers are nervous too. They’d rather sell all the cars than get more cars than they can sell. GM spokesman Tom Henderson talked to Automotive News and said that it is a time to keep away from high incentives with low resale value right now. Some adjustments are necessary, of course. For instance, in order to meet recent demand for the Chevrolet Equinox and GMC Terrain in some areas, General Motors renovated an unused area of an Ingersoll, Ontario, manufacturing plant so that more bodies can be made. Since there’s no room for the bodies on the assembly line under the current production schedule, nevertheless, GM is sending the new bodies to an additional plant located two hours east for paint and finish.
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