jasonj80 Posted July 17, 2017 Share Posted July 17, 2017 http://www.autonews.com/article/20170717/OEM01/170719793/led-by-gm-inventories-near-recordsGeneral Motors' inventory jumped 39 percent from a year ago to almost a million unsold light vehicles on July 1 as U.S. stocks reached near-record levels. Of the industry's total inventory growth of 354,200 units in the past year, GM has added 272,700 units. All other carmakers added 81,500, up 2.6 percent....... GM has said it is deliberately building stock to prepare for several plant shutdowns planned this year for retooling. But a month ago, it expected stocks to begin falling and be down to about a 90-day supply by July 1. Instead, stocks rose to 105 days from 101 on June 1. Still, spokesman Jim Cain said GM is on track to reach its goal of a 70-day supply by year end.Seems like GM might be leading an incentive war come end of the year to clear inventory, or will be doing a rental car sales dump... Quote Link to comment Share on other sites More sharing options...
akirby Posted July 17, 2017 Share Posted July 17, 2017 Seems like GM might be leading an incentive war come end of the year to clear inventory, or will be doing a rental car sales dump... In other news, water is wet and the sun is hot. GM is building too many vehicles. Ford isn't building enough. 1 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 17, 2017 Share Posted July 17, 2017 Moral Hazard: In economics, moral hazard occurs when one person takes more risks because someone else bears the cost of those risks. A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place. https://en.wikipedia.org/wiki/Moral_hazard Equally appropriate for this thread and the ChryCo subprime mess. 1 Quote Link to comment Share on other sites More sharing options...
Ron W. Posted July 18, 2017 Share Posted July 18, 2017 Ummmmm NO MORE Bail outs, if they fold let them. Quote Link to comment Share on other sites More sharing options...
Bob Rosadini Posted July 18, 2017 Share Posted July 18, 2017 Weren't bloated inventories one significant factor leading to GM's bankruptcy? Can certainly understand the need to build inventory to cover sales when plants go down for model changeovers-just seems like these are some pretty high numbers. Isn't 60 days considered ideal? Quote Link to comment Share on other sites More sharing options...
jpd80 Posted July 18, 2017 Share Posted July 18, 2017 (edited) Moral Hazard: https://en.wikipedia.org/wiki/Moral_hazard Equally appropriate for this thread and the ChryCo subprime mess. So in essence, GM and FCA think they're safe from harm because they are one step removed form sub-prime financing of auto loans. I find this levelof huberos both entertaining and worrisome as it shows complete contempt for associated financial lenders. These chickens have a way of coming home to roost and boy I hope these two get theirs in spades. Edited July 18, 2017 by jpd80 Quote Link to comment Share on other sites More sharing options...
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