Automotive News shows us that automakers are still shy about making cars despite the economic c climate of recession and the taxpayer auto bailout with it. It seems like it is more common practice to have low factory inventory now. Dealers do not have nearly enough cars they need to sell to the customers wanting increasingly more. The representation of auto brands was put into a survey that showed there weren’t enough cars to sell at 160 of 244 responding dealers. Less sales were made because of this.
Buyers not purchasing with low inventory
Dealerships are losing business through low inventory. Customers leave unsatisfied with what happened. 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. Cars like the GMC Terrain tend to be among the most problematic autos to acquire for dealers, yet makers like General Motors, Ford and the Chrysler continue to take a hard line on boosting profits when maintaining low inventory. Automakers are cutting a lot. Dealers don’t like it.
Factories making an effort
Automakers need to help dealers although they are trying to stay away from losing money with overproduction. Dealers aren’t too interested in more cars either. GM spokesman Tom Henderson talked to Automotive News and said that it is a time to avoid 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. There is not any room within the plant to finish bodies in there with paint and finish. GM has to send the bodies two hours east to get all this done.
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