Gm Suspends Big Truck Orders Because Of American Axle Strike

[fbachman]

DETROIT -- General Motors has told its dealers it has suspended production of some 2008 full-sized trucks and SUVs because of the American Axle & Manufacturing Holdings strike.

 

The vehicles:

 

• GMC Yukon

 

• GMC Denali

 

• GMC Sierra heavy-duty regular cab

 

• GMC Sierra heavy-duty extended cab

 

• GMC commercial heavy-duty

 

• Chevrolet Tahoes and same variants for Chevrolet full-sized trucks.

 

"Essentially, we're not accepting any more orders," says Randy Fox, GMC spokesman.

 

GM says it already had all the orders it could process at this time because the strike is preventing GM from getting parts. If the strike continues, there might be additional production cuts, GM spokeswoman Susan Garontakos says.

 

In a notice to dealers, GM said: "The allocation volume for the Dealer Order Submission Process cycles beginning May 8, 2008, and May 15, 2008, have been canceled."

 

That means dealers' orders won't be filled.

 

"It's not pretty," says John Rogin, owner of John Rogin GMC Truck in suburban Detroit. "If you ordered a vehicle, you aren't going to be able to request it May 8 or May 15; you have to wait until later."

 

Dave Grundstrom is on GM's National Dealer council. He says some dealers fear they will lose commercial fleet business because they can't get big trucks. But he says no business has been lost yet.

 

"The truck business is so slow in general right now it's hard to measure it," says Grundstrom, president of Marvin K. Brown Auto Center in San Diego, which sells Cadillac, Saab, Hummer, Buick and GMC. "It's sort of one or two losses for us. We're more of a retail-oriented business than commercial fleet."

 

During April's sales call, Mark LaNeve, GM's vice president of vehicle sales, service and marketing, said GM lost about 15,000 vehicles in commercial and fleet business last month because of the strike.

 

GM says it has a 102-day supply of GMC and Chevrolet 3500 heavy-duty trucks. For heavy-duty 2500 trucks, GM said the figure is 178 days.

[hubbycap]

As soft as the full-size market is right now this may be the best thing to happen to GM. And a bonus, GM doesn't have to be the bad guy.

[z85violator]

it should help deplete their overstock, its at what... over 100 days.

[fbachman]

it should help deplete their overstock, its at what... over 100 days.

 

something like that....

[svensk]

it should help deplete their overstock, its at what... over 100 days.

 

something like that....

 

It's also spiking short term demand because because people see the truck they want they're more likely to buy it on the lot right now.

[moose201]

It's also spiking short term demand because because people see the truck they want they're more likely to buy it on the lot right now.

 

Yup, that's exactly what I did.

[allterrain08]

So what does this mean for customers who had trucks ordered?

[omegafiler]

As soft as the full-size market is right now this may be the best thing to happen to GM. And a bonus, GM doesn't have to be the bad guy.

 

Exactly what I was thinking. GM almost sounds happy. It's like, "Welp, UAW strike, they really showed us, can't build trucks, oh well! Guess we'll have to sell the trucks that are on the lots!"