William Maley

GM News: GM To Cut Back On Production As Inventory Is At An 8-Year High

144 posts in this topic

William Maley    405

General Motors is dialing back on production as it currently has too many vehicles in inventory. The Detroit News reports that General Motors at the end of November had 874,000 vehicles sitting around - a number that hasn't been seen since the 2008 financial crisis. Compared to the same time last year, the number of vehicles has increased by 182,000 units. More worrying is that compared to October, the number of unsold vehicles rose by 40,000.

Despite strong sales, more consumers are going with crossovers, SUVs, and pickup trucks. GM even increased incentives on a number of models to help relieve this glut, all to no avail.

According to Autodata, this is amount of passenger vehicles GM had sitting,

  • 110 day-supply of the Cadillac CT6
  • 119 day-supply of the Cadillac ATS
  • 121 day-supply of the Chevrolet Cruze
  • 132 day-supply of the Cadillac CTS
  • 168 day supply of the Buick LaCrosse
  • 170 day-supply of the Chevrolet Corvette and Spark
  • 177 day-supply of the Chevrolet Camaro

Because of this, General Motors is cutting back on production at some of their plants. As we reported last month , GM is cutting a shift at their Lansing Grand River plant in Michigan (home to Cadillac ATS, CTS, and Chevrolet Camaro) and a shift at Lordstown, Ohio plant (home to the Chevrolet Cruze). General Motors will also be shutting down five plants according to Reuters in January. The plants include,

  • Detroit-Hamtramck (Three weeks)
  • Fairfax, KS (Three weeks)
  • Lansing Grand River (Two weeks)
  • Lordstown, OH (One week)
  • Bowling Green, KY (One week)

Source: The Detroit News, Reuters


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Stew    350

Huh, and I thought it was just FCA cars losing ground and having big incentives because they were on old platforms and nothing to do with the CUV boom.  Who knew..........

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surreal1272    756
27 minutes ago, Stew said:

Huh, and I thought it was just FCA cars losing ground and having big incentives because they were on old platforms and nothing to do with the CUV boom.  Who knew..........

Come on Stew. FCA is suffering from both issues and this is coming from an 8 year Magnum owner and an LX fan. They have problems that go beyond just CUVs or lack thereof. 

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Stew    350
7 minutes ago, surreal1272 said:

Come on Stew. FCA is suffering from both issues and this is coming from an 8 year Magnum owner and an LX fan. They have problems that go beyond just CUVs or lack thereof. 

Not really.  the cars made in the plants that GM is idling have all not been the sales successes expected, especially the Alpha cars and the Omega CT6 already having issues?  Not good.  And Jeep is the highest selling CUV/SUV brand bar none. 

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surreal1272    756
48 minutes ago, Stew said:

Not really.  the cars made in the plants that GM is idling have all not been the sales successes expected, especially the Alpha cars and the Omega CT6 already having issues?  Not good.  And Jeep is the highest selling CUV/SUV brand bar none. 

That does not take away from my original statement about FCA. For the record though, I do not disagree with the GM issues but it is easier to prove their losses are a result of the CUV craze than it is about the product itself. That is the difference between what is going on at GM and what is going on at FCA. The LX platform is two decades old and is in dire need of a shot in the arm but FCA seems content to hang it out to dry while making a bunch of empty promises about such. 

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hyperv6    774

Well GM has a lot more options this time than back in 09. 

The union deals that made them pay are gone. 

Also many of the cars on the list have to be considered. The Enclave and Terrain are going into build out mode where they stock pile them as new models and lines are being made. This number is not suprising and the Terrain will move to classic mode with fleet sales taking care of the volume. 

The Cruze had to get caught up and GM has worked 2-3 shifts. they will just go back to one and most of the people will just come off over time. 

The Alpha has suffered mostly due to the changes at Cadillac and the Camaro price increase where people will wait it out for incentives. They have already done some and it helped. The real hurt is the declines in the coupe market. Even the Mustang has suffered greater sales declines. 

Corvette has several issues. one it is winter and many are waiting to see what the C8 will bring. It is not far off. 

But here is the real issue. The market is in decline for everyone. The companies that had prepared for it will survive pretty find. GM for the last few years has been working hard on SUV and CUV models as well as two truck lines to keep profits and volume up. They also have worked hard to increase ATP so even at lower volumes and with some incentives they will remain profitable. 

They need to get the new Buick lines in place and star better marketing the Lacrosse. It is a big unknown out there and a really good car for the money. Cadillac is a write off for the next couple years but they will remain profitable even at lower volumes. 

The key will be to see how they manage inventories from January to July. If they can work it well they will sell down with the auto shows coming but sales will decline but look for profits to remain in the black. 

Holding many new products and larger volume products give so much more flexibility to work the market. 

 

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smk4565    350

That's Too Much Cars!!!

 

They need to cut production way back, I imagine the discounts will hit most of those cars come the winter months when sales tend to slow down even more.  But look at that list, luxury sedans and sports coupes.  Coupe sales are dropping everywhere, full size sedans dropping every where, and the ATS never really hit it, the Infiniti and Lexus counterparts outsell it with ease, let alone what the German leaders do. 

GM also has to look at their brands, they are too car heavy.  Chevy has more sedans than crossovers, that makes no sense.  Cadillac has 1 crossover, they should have 4.  The market wants crossovers.  We enthusiasts like rear drive luxury sedans and sports cars, but the sheeple out there want tall wagons for their "active lifestyles" or some crap.

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hyperv6    774

 Well what are most of the new coming vehicles that are coming in the next years. All trucks and SUV/CUV models for the most parts. 

Just the Equinox and Traverse will major impact the Chevy numbers alone. 

The future will have to still have cars to meet CAFE so you have to keep them up and GM is not going to be stupid and ax their car lines like Chrysler did as they will be needed in the future.  But with that said slow models like the Impala and others could be at risk.  

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hyperv6    774

I also think what is being missed here is GM can idle plants today where as in the past it was cheaper to keep them open and in production since they had to pay union members nearly full wage no matter if they worked or not. 

Think about it GM never used to close much down other than the change over in June and July. Now they can do as others have done for years in production. One card that was never permitted to play before the bail out due to poorly structured contracts. 

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surreal1272    756
11 hours ago, Wings4Life said:

That's a lot of newer GM product that is loitering around lots.  FCA has problems, but very little that new product can't solve.  GM's problems are scary.  

 

And wow, CT6 is at 110 days already.  

Yeah, they should have moved thirty percent of their inventory to fleet like Ford did the first nine months of the year. Oh wait, Ford had to stop production on the F-150 and Mustang for a short time too not even two months ago. GM will be fine. 

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813d5ec521149f91573e3c56ea86881c.jpg

 

First this is a stock manipulator, failing to have a real effect. Interesting enough if U were smart enough to buy back in June.. U are now $10 per share richer

 

Second... This does nothing in taking away from the greatness of any of the cars at any of the plants.. These are '17 models.. which will be the newest things out for the next 10 months before the '18s arrive. I'm tripping on how the usual suspects come into a thread claiming that suddenly a CAR is inferior because it has a supply abundance.. How about GM had a "I'm giving these workers some hours to help the economy and not lay-off during the Holidays" issue.

Me??? If I were running Ford... and this came about (which it did but I'll get to that in a sec) I'd find Wingnuts specifically and say "Wings!!! GET THE $#$@  OUT!!! And Don't let the Door hit your fat A$$!!!" :angry::P As I told other workers.. "hate that guy..."

Bottom line is that GM idle the CAR plants because lets face it.. cars are the secondary transportation units these days. Not including SUVS.. CUVs have accounted for 5.1 Mil while cars in the MID-SIZE sold 3 Mil, LARGE and Lux cars sold 900K  and Compacts sold 2.6 Mil. This means CUVs have dwarfed all three of the car categories individually 

 

Oh... Didn't Ford just, lil over a month ago idle its Wayne plant because of light demand for the Focus and Cmax.. then idle the Kentucky and Mexico plants that makes the Escape and MKC?? Also.. they idled Kansas City for overproducing the mighty F150!!!  Yes.. the did: THE YES THE DID LINK :lol: and another: The F150 on SOFT DEMAND LINK

Stew.. I won't even comment on anything going on over at FCA.. Its just too effin sad to speak about:o

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Stew    350

I can pretty well guarantee you will see cars come back to Dodge dealerships.  I see no problem with them outsourcing for their midsize and compacts, as something GM did with Toyota and Ford with Mazda.  The fact is that right now it is more important for them to fill their portfolios with what sells and that is SUV/CUVs.  Let's be honest here.  The importance o the Dart was not sales or even longevity in the marketplace.  It was a tool that they used to get over the 40 MPG barrier that allowed Fiat to purchase more of Chrysler.  The 200 was actually a nice car, it just needed tweaked which could have happened with a nice MCE, but the plant space right now is better used for more profitable trucks (much as GM did when they killed the B-bodies in 96 and replaced them with fullsize trucks in the factory).  The problem here is like wins said, that is a lot of newer product on newer platforms to be stopping the factories on.  We will see the LX replacements because their usage of the new Alfa platform has to happen to make it financially viable, as much as the Camaro is the price leader for the Alpha range.  Honestly, with their more complete SUV/CUV ranges FCA, Ford, and Toota are in some of the best positions right now to give people what they want. 

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Stew    350

I will say i become more convinced everyday that Cadillac needs to work on heir quality.  My brother's ATS at less than 10k miles has already had to have the entire CUE head-unit replace and some features such as the lighted entry, only work sometimes.  He has also had to have the PCM flashed for rough idling.  Add to that the fact that for courtesy cars he always gets Impala Limiteds where as the Audi dealership had A3s and Q5s as their loaners.   If Cadillac wants to be taken seriously they really need to work out the bugs and get WAY moe serious about their dealership experience. 

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ccap41    1,221
31 minutes ago, Stew said:

Add to that the fact that for courtesy cars he always gets Impala Limiteds where as the Audi dealership had A3s and Q5s as their loaners. 

I think this is actually a huge issue. While it isn't such a huge deal.. it is at the same time. You don't loan somebody who's spent 40-100k on a Cadillac a Chevy Impala or Chevy anything.

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Wings4Life(BANNED)    1,000,000
50 minutes ago, Cmicasa the Great said:

813d5ec521149f91573e3c56ea86881c.jpg

 

First this is a stock manipulator, failing to have a real effect. Interesting enough if U were smart enough to buy back in June.. U are now $10 per share richer

 

Second... This does nothing in taking away from the greatness of any of the cars at any of the plants.. These are '17 models.. which will be the newest things out for the next 10 months before the '18s arrive. I'm tripping on how the usual suspects come into a thread claiming that suddenly a CAR is inferior because it has a supply abundance.. How about GM had a "I'm giving these workers some hours to help the economy and not lay-off during the Holidays" issue.

Me??? If I were running Ford... and this came about (which it did but I'll get to that in a sec) I'd find Wingnuts specifically and say "Wings!!! GET THE $#$@  OUT!!! And Don't let the Door hit your fat A$$!!!" :angry::P As I told other workers.. "hate that guy..."

Bottom line is that GM idle the CAR plants because lets face it.. cars are the secondary transportation units these days. Not including SUVS.. CUVs have accounted for 5.1 Mil while cars in the MID-SIZE sold 3 Mil, LARGE and Lux cars sold 900K  and Compacts sold 2.6 Mil. This means CUVs have dwarfed all three of the car categories individually 

 

Oh... Didn't Ford just, lil over a month ago idle its Wayne plant because of light demand for the Focus and Cmax.. then idle the Kentucky and Mexico plants that makes the Escape and MKC?? Also.. they idled Kansas City for overproducing the mighty F150!!!  Yes.. the did: THE YES THE DID LINK :lol: and another: The F150 on SOFT DEMAND LINK

Stew.. I won't even comment on anything going on over at FCA.. Its just too effin sad to speak about:o

This thread is not about Ford, it's about GM's huge glut of product sitting on lots.

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Stew    350
6 minutes ago, ccap41 said:

I think this is actually a huge issue. While it isn't such a huge deal.. it is at the same time. You don't loan somebody who's spent 40-100k on a Cadillac a Chevy Impala or Chevy anything.

Yes, with a luxury car the dealership experience is very important.  Even the showroom itself is important.  The Audi dealership was high class with wood floors and warm tones everywhere and at least one example of every model they offer in the interior showroom for you to browse (I am such a kid just sitting in a new R8 gave me a hue smile).  he Chevy/Cadillac dealership is all white, white walls, white floors, flimsy seats, in other words nothing special.  Cadillac needs their own showrooms period. 

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surreal1272    756
15 minutes ago, Stew said:

Yes, with a luxury car the dealership experience is very important.  Even the showroom itself is important.  The Audi dealership was high class with wood floors and warm tones everywhere and at least one example of every model they offer in the interior showroom for you to browse (I am such a kid just sitting in a new R8 gave me a hue smile).  he Chevy/Cadillac dealership is all white, white walls, white floors, flimsy seats, in other words nothing special.  Cadillac needs their own showrooms period. 

You do know that Cadillac is addressing that very issue with their dealerships right? They are pairing (closing) the smaller market dealerships down and updating and renovating the rest. This has been well addressed here before. 

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51 minutes ago, Stew said:

I will say i become more convinced everyday that Cadillac needs to work on heir quality.  My brother's ATS at less than 10k miles has already had to have the entire CUE head-unit replace and some features such as the lighted entry, only work sometimes.  He has also had to have the PCM flashed for rough idling.  Add to that the fact that for courtesy cars he always gets Impala Limiteds where as the Audi dealership had A3s and Q5s as their loaners.   If Cadillac wants to be taken seriously they really need to work out the bugs and get WAY moe serious about their dealership experience. 

On the loaner service.. don't kno.. My dealerships ( I usually deal with one here in Balto.. but a different one when I'm at my Voorhees home) always.. and I mean always have a in stock Loaner. A few years ago they were using Enterprise tho, but that was before 2009. About a month ago I had to take my V in for an Oil change etc and they gave me '17 XTS4 with like 300 miles on her. It was a Premium Luxury VSport. I asked for a CT6 or even a Platinum VSport XTS, but they couldn't. Point is that it may be the dealership. 

 

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Stew    350
1 minute ago, Cmicasa the Great said:

On the loaner service.. don't kno.. My dealerships ( I usually deal with one here in Balto.. but a different one when I'm at my Voorhees home) always.. and I mean always have a in stock Loaner. A few years ago they were using Enterprise tho, but that was before 2009. About a month ago I had to take my V in for an Oil change etc and they gave me '17 XTS4 with like 300 miles on her. It was a Premium Luxury VSport. I asked for a CT6 or even a Platinum VSport XTS, but they couldn't. Point is that it may be the dealership. 

 

Which is another issue onto itself.  All dealerships should be offering a premium experience.

4 minutes ago, surreal1272 said:

You do know that Cadillac is addressing that very issue with their dealerships right? They are pairing (closing) the smaller market dealerships down and updating and renovating the rest. This has been well addressed here before. 

Last i saw this was on hold because of push back from the dealerships?

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28 minutes ago, ccap41 said:

I think this is actually a huge issue. While it isn't such a huge deal.. it is at the same time. You don't loan somebody who's spent 40-100k on a Cadillac a Chevy Impala or Chevy anything.

Again.. its a dealership thing. Also.. realize that had they given me an Impala I would have had ZERO issue even after spending $100K on my Caddy. Quite frankly they didn't even have to offer a loaner as my issue wasn't an issue for them but an issue that I created when I booked the appointment with them.. but had double-booked an appoint with a client at the same time. The Impala is a pretty nice place to be these days.. Ironically the Chevy dealership give me a Camaro when I had to take my Stingray in for a recall. It was a V6 but that thing was SWEET:D 

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surreal1272    756
3 minutes ago, Stew said:

Which is another issue onto itself.  All dealerships should be offering a premium experience.

Last i saw this was on hold because of push back from the dealerships?

Of course there wil be some push back but its going to happen whether the weak dealerships like it or not. It also doesn't change my original point. 

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Stew    350
Just now, Cmicasa the Great said:

Again.. its a dealership thing. Also.. realize that had they given me an Impala I would have had ZERO issue even after spending $100K on my Caddy. Quite frankly they didn't even have to offer a loaner as my issue wasn't an issue for them but an issue that I created when I booked the appointment with them.. but had double-booked an appoint with a client at the same time. The Impala is a pretty nice place to be these days.. Ironically they give me a Camaro when I had to take my Stingray in for a recall. It was a V6 but that thing was SWEET:D 

But you only buy GM and have experience with Caddy dealerships.  If you are coming from an Audi, Benz, or even a Lexus the dealership experience is going to be a major downgrade and will certainly effect your opinion of owning the brand as a whole. 

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Stew    350
6 minutes ago, surreal1272 said:

Of course there wil be some push back but its going to happen whether the weak dealerships like it or not. It also doesn't change my original point. 

The longer it takes, the worse it will be.  this change should have been made decades ago. 

 

Edit:

Looks like the have actually delayed it 2 times already

 

http://www.wsj.com/articles/cadillac-delays-controversial-dealership-plan-1479920782

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Wings4Life(BANNED)    1,000,000

The elephant in the room is the fact that it is the cars that are not selling, because customers demand more CUV's, and GM is slow to adjust to customer demand.  Cadillac currently has 1 CUV, when they should have at lest 3, currently

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      Birth of a European Champion: Opel and Vauxhall join Groupe PSA
      Opel and Vauxhall to be operated as true iconic German and British brands New performance plan to be presented in 100 days: to generate a positive operational free cash flow by 2020 as well as an operating margin of 2% by 2020 and 6% by 2026 Four new team members to join the leadership team Rüsselsheim.  The sale of Opel Automobile GmbH with its brands Opel and Vauxhall by General Motors to Groupe PSA has been finalized now. “It is a historic day,” said Opel Automobile GmbH CEO Michael Lohscheller. “We are proud to join Groupe PSA and are now opening a new chapter in our history after 88 years with General Motors. We will continue our path of making technology `made in Germany´ available to everyone. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business. We have set ourselves the clear target of returning to profitability by 2020.”
      “We are witnessing the birth of a true European champion today,” emphasized PSA Chairman of the board Carlos Tavares. “We will assist Opel and Vauxhall’s return to profitability and aim to set new industry benchmarks together. We will unleash the power of these iconic brands and the huge potential of its existing talents. Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroën and DS Automobiles.” The market share of the enlarged Groupe PSA is now around 17 percent in Europe, making it the continent’s second largest carmaker with first or second place in main markets.
      As already assured when the contract was signed in March, all employee codetermination rights will remain unchanged.
      The Opel/Vauxhall management team will work on a plan for the future in the next 100 days. “We are eager to build the plan with PSA’s support and obviously together with our partners from the Works Council and the unions,” said Opel CEO Lohscheller. Synergies within the Groupe PSA, for example in purchasing and development, are set to play a major part. The combined entity will unlock substantial economies of scale and synergies in purchasing, manufacturing and R&D estimated at €1.7 Bn at run rate. The goal is to generate a positive operational free cash flow by 2020 as well as an operating margin of two percent by 2020 and six percent by 2026.
      Today’s start of a new era is accompanied by some important leadership changes. “I am happy to announce that four new members will join my management team,” said CEO Lohscheller:
      Christian Müller, previously Vice President Global Propulsion Systems – Europe and with Opel since 1996, will succeed William F. Bertagni as Vice President Engineering. He will integrate engineering and powertrain in one department. Rémi Girardon, previously Senior Vice President Group Industrial Strategy at Groupe PSA, will succeed Philip R. Kienle as Vice President Manufacturing. Philippe de Rovira, previously Group Controller at Groupe PSA, will become the new CFO of Opel, following Michael Lohscheller. Michelle Wen, Group Supply Chain Management Network Director at Vodafone Procurement, will be joining the Opel leadership team effective September 1 replacing Katherine Worthen currently Vice President Purchasing and Supply Chain. All other moves are with immediate effect. “We thank Katherine Worthen, William F. Bertagni and Philip Kienle for all their contributions to Opel/Vauxhall and wish them all the best for the next chapter of their careers within General Motors,” said Opel CEO Lohscheller. “And we cordially welcome Michelle Wen from Vodafone as well as Remi Girardon and Philippe de Rovira from Groupe PSA. I am looking forward to working with these new team members who will reinforce the potential of our leadership team.”
      Going forward, Michael Lohscheller is planning with a much leaner management structure, including the number of direct reports. “We are reducing complexity and increasing speed,” said Lohscheller. “I am looking forward to shaping the next chapter of Opel/Vauxhall with the new management team and leading our company into a successful future. The owners and the employees will not be the only ones to benefit from ever stronger Opel and Vauxhall brands – our customers will do so too.”
      PSA and Opel/Vauxhall have been working together since 2012. The cooperation so far includes four vehicles from Opel. The first model, the Opel Crossland X, has been available at dealerships since the end of June. The Opel Grandland X SUV in the next higher segment follows in the fall. The successor of the Opel Combo light commercial vehicle will come onto the market next year and as of 2019 the next generation of the best-selling Opel Corsa will be launched.
      Opel/Vauxhall and Groupe PSA will continue to work with General Motors in the future. In addition to development in the area of electric propulsion, Opel plants will continue to produce vehicles for the GM brands Buick and Holden.
      In parallel, the acquisition of GM Financial's European operations is under way, subject to validation by the different regulatory authorities’ review and is scheduled for the second half of 2017.

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