Low factory inventory means dealers need cars

Auto makers still aren’t making many cars. As outlined by Automotive News, this is opposite of what should be happening with the taxpayer auto bailout that came from the economic climate of recession. Now it seems like low factory inventory is what most companies live by. Dealers don’t have nearly enough cars they need to sell to the customers wanting a growing number of. An online survey found that more than 160 of 244 responding dealers – representing the spectrum of automotive brands – had too few autos to sell. This caused a loss in sales. Numerous in the survey reported this loss. Source for this article – Low factory inventory means dealers need cars by Car Deal Expert.

Buyers not buying with low inventory

Low inventory is the reason why buyers have left their dealerships upset. 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. Evidently automakers “have driven supplies too low” making it extremely hard to sell the cars needed to keep up a flow of money. A dealer explained this to Automotive News. 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 don’t like this cut from automakers.

Factories working on it

Helping dealers is a priority for automakers, but these exact same automakers are cautious to keep away from the overproduction that drove the industry to the gates of ruin. Dealers don’t want more cars than they can sell, 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. You will find some things that have to be done. Demand has been really high for the Chevrolet Equinox and the EMC Terrain. This is why a new plant was made for manufacturing bodies in Ingersoll, Ontario. Since there’s no room for the bodies on the assembly line under the current production schedule, however, GM is sending the new bodies to one more plant located two hours east for paint and finish.

More on this topic

Auto News

autonews.com/article/20100823/OEM01/308239949/1262