Auto makers nevertheless aren’t making many cars. According to Automotive News, this is opposite of what should be happening with the taxpayer auto bailout that came from the economic climate of recession. Seems like like it is more common practice to have low factory inventory now. There are more individuals getting cars but dealers don’t have the cars they need to sell them. 160 of 244 dealers responded in a survey saying there weren’t enough vehicles to sell. This was designed to represent all of the auto brands. Many of those responding admitted to a loss in sales.
Buyers not buying 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. 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. 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 are worried that that automakers may be cutting too much.
Factories help
Automakers need to help dealers although they’re trying to keep away from losing money with overproduction. Dealers aren’t too interested in more cars either. The old days of gigantic incentives, low resale values and other desperation practices must be avoided at all costs, GM spokesman Tom Henderson told Automotive News. There are some things that have to be done. 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 is 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.
Additional reading
Auto News
autonews.com/article/20100823/OEM01/308239949/1262
