GM to Cut Production Due to Inventory Surplus

General Motors has a surplus of cars, forcing it to reduce production at yet another facility–its Detroit-Hamtramck Assembly Plant where it builds the Chevrolet Volt, Impala, Buick LaCrosse, and Cadillac CT6.

According to The Detroit News, GM will suspend production at Hamtramck for three weeks next month. The move was prompted by the automaker’s growing vehicle supply, which stood at over 874,000 units at the end of November. That’s an increase of approximately 182,000 vehicles compared to the same period last year. The report states GM has an 87-day supply of vehicles, which is higher than what industry analysts say is healthy (60-70-day supply). The report says GM’s inventory is the highest it’s been in eight years.

The inventory glut also demonstrates the increasing shift toward SUVs and trucks over cars. The Chevrolet Camaro, for example, had a 177-day supply at the end of November, and it was 170 days for the Corvette and Spark. Meanwhile, supplies of the Colorado truck and Trax compact crossover is less than 50 days.

GM previously announced job and production cuts at other plants including Lansing Grand River where the Camaro and Cadillac CTS are built. The automaker’s facility in Lordstown, Ohio, (Cruze production) is also cutting back.

Ford and Fiat Chrysler Automobiles are also facing an inventory surplus. Through the end of November Ford had an 83-day supply of vehicles and FCA was dealing with 93 days.

Source: The Detroit News

 

 

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