The economic climate of recession and the resulting taxpayer auto bailout apparently still has automakers gun shy, reports Automotive News. Now seems like like low factory inventory is what most companies live by. Dealers do not have nearly enough cars they need to sell to the customers wanting more and more. An online survey found that more than 160 of 244 responding dealers – representing the spectrum of automotive brands – had too few vehicles to sell. This caused a loss in sales. Many in the survey reported this loss.
Low inventory cuts business
Low inventory is the reason why buyers have left their dealerships upset. Much of the auto sales comes from GMCs, Hondas, Hyundais and Chevys although there seems to never be enough. One dealer told Automotive News that automakers “have driven supplies too low,” yet dealers like him are certain they could sell more if stock was available. Auto dealers aren’t having an easy time getting cars like the GMC Terrain from companies like General Motors, Ford and even Chrysler. This has made dealers run out of the popular cars quickly. Dealers don’t like this cut from automakers.
Factories making an effort
Helping dealers is a priority for automakers, but these 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. Right now is a time that we need to move forward from the high incentive and low resale value cars. Automotive News reported this after talking with Tom Henderson. You will find always things that need to change. 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 could 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.
Auto News
autonews.com/article/20100823/OEM01/308239949/1262
