The economic climate of recession and also the resulting taxpayer auto bailout evidently still has automakers gun shy, reports Automotive News. It appears like the times have changed. Now and days it is more common to see low factory inventory. Dealers do not have nearly enough cars they have to sell to the customers wanting more and more. The representation of auto brands was put into a survey that showed there weren’t enough autos to sell at 160 of 244 responding dealers. This caused a loss in sales. Many in the survey reported this loss.
Business goes down with low inventory
Dealerships are losing business through low inventory. Customers leave unsatisfied with what happened. The most popular brands of car to purchase are Chevy, Hyundai, Honda or GMC. Sadly, these are also the ones running out because of unavailability. 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 impossible for auto dealers to get a hold of. Dealers don’t like this cut from automakers.
Help comes from some factories
Automakers have to help dealers although they are trying to keep away from losing money with overproduction. Dealers aren’t too interested in more cars either. GM spokesman Tom Henderson talked to Automotive News and said that it is a time to keep away from high incentives with low resale value right now. You will find some things that have to be done. GM has been changing a part of a plant in Ingersoll, Ontario to create more bodies showing that Chevrolet Equinox and GMC Terrain need more cars to meet demand. 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.
Further reading
Auto News
autonews.com/article/20100823/OEM01/308239949/1262
