Mustang Parts
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Thursday, May 12, 2005

Ramming the Iceberg

From the Detroit News, a report that GM is going to increase production at its full size truck plants, "in anticipation of a surge in late spring and summer sales."

This is quite a gamble. If the sales jump doesn't materialize, GM will be left with even more inventory languishing on storage lots, and will have to put even more cash on the hood to sell it all off. Currently, GM has an 80 day supply of its trucks.

GM apparently continues to embrace the "volume at all costs" strategy, but they really don't have much of a choice at this point. They have spoiled their customers with rebates, and the new trucks are not due for some time yet.

1 comment:

Anonymous said...

Poor GM. I hate the fact that they are languishing. Their products are second to none. I think it is just that no one buying a foreign vehicle gives GM (and Ford) the time of day. They blithely look over them.