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GM Dealers Have Solid Inventory As Strike Appears To Be Ending


Gorehamj
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John Goreham
Contributing Writer, GM-Trucks.com
9-26-2019

The general vibe today is that the nationwide United Auto Workers strike against GM over a contract renewal is about to wrap up. GM opted to pay UAW members' health care benefits after all. While knowing very little about how the negotiations are actually going, that certainly seems like a gesture that GM can point back to as part of its image maintenance. Today is Thursday. This author feels that the strike may wrap up over the weekend. 

 

GM's motivation to put workers back on the lines certainly does not seem to be a lack of available vehicles on dealer lots. At our request, the folks at iSeeCars.com were kind enough to spend a bit of time and energy calculating their estimate of how many "days of inventory" GM's dealers had of top-selling GM models. The numbers indicate that the dealers are likely glad to be moving some of this iron off the lots. Here's the breakdown we got from iSeeCars:

 

iseecars gm inventory 9-26-19.png

As you can see, the dealers may have a shortage of some individual "hot" trims, but overall, the inventory is healthy. This study corroborated others we have seen reported that showed up to 11 weeks of inventory were built up ahead of the UAW action. We find it interesting that the imported from Korea Buick Encore is the model with the most days available. With about 80 days of trucks available, there is also no shortage of pickups on dealer lots overall. 

 

As this story is published, the strike is still on. How long do you think it will last? 

GM worker arlington.jpg

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No one is buying them anyway here because the 2019 has a $10k price jump over the last 2018, and the K2 had a $10k jump over the GMT9. They want more for a new All Terrain here than a Base model C8 mid engine Corvette. I know I will never buy a personal half ton again unless they are knocking a minimum of $10k off in incentives. People paying 60,000usd or 70,000cad for these things are crazy. My dealer had a 2018 gasser 2500 with a lift and a bumper and they want $101,000

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It's been a few years, but when I was working in Tier one autoparts (direct suppliers to the OEM's) 60 to 80 day supply was pretty 'normal'.

 

We supplied parts to many models/plants so watched the numbers try and help predict our combined production schedule.  Do we need overtimed, what machine time can we schedule for maintenance/rebuilds etc etc.

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MAYBE it time for GM to give some good huge discount , Your not going to sell these Cars / Trucks at these high price's .  Dealer lots & Rail road yard is FULL. 

 

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