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The Possible Inventory Problem of the Chevrolet Equinox
William Maley posted an article in Chevrolet
We're now into the third week of the strike at GM's CAMI Assembly in Ontario and neither side appears to be budging. There are rising concerns that GM could be running out of the stockpile of the Chevrolet Equinox. GM's second-best selling nameplate. According to data from Automotive News, GM had 43,453 Equinoxes (about a 41-day supply) at the beginning of this month. Chevrolet dealers sold 27,512 Equinox models last month. If this trend continues, there could be some serious problems towards the end of the year. "That's going to be hard on Equinox to compete on such a limited quantity in such a hot segment. We would expect sales to pick up in the last quarter of the year," said Jessica Caldwell, senior analyst and director of pricing and industry analysis for Edmunds.com. GM has been downplaying this issue since the strike started. "We believe we have sufficient inventory and production to meet demand while negotiations continue and we continue to work closely with dealers to ensure customers continue to be well served," the company said in a statement. A small number of dealers that spoke with Automotive News said their inventory of the Equinox models hasn't been directly affected, but that could change if the strike continues. GM is ramping up Equinox production at two plants in Mexico - San Luis Potosi and Ramos Arizpe. The company declined to provide production capacity or change in plans due to the strike. But neither plant can compete with the output of CAMI. Through August, the two Mexican plants produced 40,017 Equinox models since production began in April. Compared to CAMI which produced an estimated 132,388 models in the same timeframe. "We don't know the ramp-up at the other production facilities in Mexico. That's the X factor," said Caldwell. Source: Automotive News (Subscription Required) -
We're now into the third week of the strike at GM's CAMI Assembly in Ontario and neither side appears to be budging. There are rising concerns that GM could be running out of the stockpile of the Chevrolet Equinox. GM's second-best selling nameplate. According to data from Automotive News, GM had 43,453 Equinoxes (about a 41-day supply) at the beginning of this month. Chevrolet dealers sold 27,512 Equinox models last month. If this trend continues, there could be some serious problems towards the end of the year. "That's going to be hard on Equinox to compete on such a limited quantity in such a hot segment. We would expect sales to pick up in the last quarter of the year," said Jessica Caldwell, senior analyst and director of pricing and industry analysis for Edmunds.com. GM has been downplaying this issue since the strike started. "We believe we have sufficient inventory and production to meet demand while negotiations continue and we continue to work closely with dealers to ensure customers continue to be well served," the company said in a statement. A small number of dealers that spoke with Automotive News said their inventory of the Equinox models hasn't been directly affected, but that could change if the strike continues. GM is ramping up Equinox production at two plants in Mexico - San Luis Potosi and Ramos Arizpe. The company declined to provide production capacity or change in plans due to the strike. But neither plant can compete with the output of CAMI. Through August, the two Mexican plants produced 40,017 Equinox models since production began in April. Compared to CAMI which produced an estimated 132,388 models in the same timeframe. "We don't know the ramp-up at the other production facilities in Mexico. That's the X factor," said Caldwell. Source: Automotive News (Subscription Required) View full article
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General Motors is dialing back on production as it currently has too many vehicles in inventory. The Detroit News reports that General Motors at the end of November had 874,000 vehicles sitting around - a number that hasn't been seen since the 2008 financial crisis. Compared to the same time last year, the number of vehicles has increased by 182,000 units. More worrying is that compared to October, the number of unsold vehicles rose by 40,000. Despite strong sales, more consumers are going with crossovers, SUVs, and pickup trucks. GM even increased incentives on a number of models to help relieve this glut, all to no avail. According to Autodata, this is amount of passenger vehicles GM had sitting, 110 day-supply of the Cadillac CT6 119 day-supply of the Cadillac ATS 121 day-supply of the Chevrolet Cruze 132 day-supply of the Cadillac CTS 168 day supply of the Buick LaCrosse 170 day-supply of the Chevrolet Corvette and Spark 177 day-supply of the Chevrolet Camaro Because of this, General Motors is cutting back on production at some of their plants. As we reported last month , GM is cutting a shift at their Lansing Grand River plant in Michigan (home to Cadillac ATS, CTS, and Chevrolet Camaro) and a shift at Lordstown, Ohio plant (home to the Chevrolet Cruze). General Motors will also be shutting down five plants according to Reuters in January. The plants include, Detroit-Hamtramck (Three weeks) Fairfax, KS (Three weeks) Lansing Grand River (Two weeks) Lordstown, OH (One week) Bowling Green, KY (One week) Source: The Detroit News, Reuters View full article
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GM To Cut Back On Production As Inventory Is At An 8-Year High
William Maley posted an article in General Motors
General Motors is dialing back on production as it currently has too many vehicles in inventory. The Detroit News reports that General Motors at the end of November had 874,000 vehicles sitting around - a number that hasn't been seen since the 2008 financial crisis. Compared to the same time last year, the number of vehicles has increased by 182,000 units. More worrying is that compared to October, the number of unsold vehicles rose by 40,000. Despite strong sales, more consumers are going with crossovers, SUVs, and pickup trucks. GM even increased incentives on a number of models to help relieve this glut, all to no avail. According to Autodata, this is amount of passenger vehicles GM had sitting, 110 day-supply of the Cadillac CT6 119 day-supply of the Cadillac ATS 121 day-supply of the Chevrolet Cruze 132 day-supply of the Cadillac CTS 168 day supply of the Buick LaCrosse 170 day-supply of the Chevrolet Corvette and Spark 177 day-supply of the Chevrolet Camaro Because of this, General Motors is cutting back on production at some of their plants. As we reported last month , GM is cutting a shift at their Lansing Grand River plant in Michigan (home to Cadillac ATS, CTS, and Chevrolet Camaro) and a shift at Lordstown, Ohio plant (home to the Chevrolet Cruze). General Motors will also be shutting down five plants according to Reuters in January. The plants include, Detroit-Hamtramck (Three weeks) Fairfax, KS (Three weeks) Lansing Grand River (Two weeks) Lordstown, OH (One week) Bowling Green, KY (One week) Source: The Detroit News, Reuters -
Since the recession has ended, the average price of a used car was soared due limited supply. But The Detroit News says with more vehicles coming in due to leases coming to an end, prices are beginning to fall. According to CNW Research, the average transaction price of a used car in September was $10,963. Compared to the same time last year, the average has dropped 2.1 percent. "During the recession, it almost cost as much to get a used car as it did to get a new car, but now the market is going back to historical norms and it's going to be better every month. From 2008 to 2012, there was a significant growth in the number of leased cars and now they're all coming back to the market. As supply is increasing, auction values are dropping ... making used cars more affordable," said Larry Dominique, vice president of TrueCar. Used car supplies are on the rise as well, with 9.76 million vehicles sitting on used lots in September. That's an increase of 1.5 percent when compared to the same time last year. But there are downsides to increase in used car supplies. Analysts say the increase of supplies means it will be harder for dealers to move vehicles. Also expect an increase in lease rates. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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Since the recession has ended, the average price of a used car was soared due limited supply. But The Detroit News says with more vehicles coming in due to leases coming to an end, prices are beginning to fall. According to CNW Research, the average transaction price of a used car in September was $10,963. Compared to the same time last year, the average has dropped 2.1 percent. "During the recession, it almost cost as much to get a used car as it did to get a new car, but now the market is going back to historical norms and it's going to be better every month. From 2008 to 2012, there was a significant growth in the number of leased cars and now they're all coming back to the market. As supply is increasing, auction values are dropping ... making used cars more affordable," said Larry Dominique, vice president of TrueCar. Used car supplies are on the rise as well, with 9.76 million vehicles sitting on used lots in September. That's an increase of 1.5 percent when compared to the same time last year. But there are downsides to increase in used car supplies. Analysts say the increase of supplies means it will be harder for dealers to move vehicles. Also expect an increase in lease rates. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
Lincoln Dealers Not Happy With Slow Production Ramp-Up For MKZ
William Maley posted an article in Lincoln
By William Maley Staff Writer - CheersandGears.com February 12, 2013 Right now isn't a good time to be Lincoln. Executives recently had to deal with frustrated dealers at National Automobile Dealers Association Convention and Expo in Orlando, FL. The frustrations stem from the lack of the new MKZ on dealer lots. Don Chalmers, a Ford and Lincoln dealer from New Mexico tells The Detroit News that with the lack of inventory, they're losing sales from customers who want to buy. Lincoln sales in January were to say in the least, abysmal. Total sales was around 4,191 vehicles, an 18% drop when compared to last year. MKZ sales suffered badly; Lincoln only sold 453 vehicles for the month, despite the MKZ having the biggest number of pre-orders in Lincoln history. The small number of sales is due to the numerous quality checks going on at Ford's Hermosillo, Mexico assembly plant to make sure each MKZ is just right. In fact, Ford is shipping some of the MKZs to a factory in Flat Rock, Michigan for a closer inspection. Analysts believe Ford is going to these measures to to avoid therecall issues that have plagued recent launches including the Escape and Fusion. Ford executives say Lincoln dealers won't have a full inventory of MKZs till April. Source: The Detroit News, Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
By William Maley Staff Writer - CheersandGears.com February 12, 2013 Right now isn't a good time to be Lincoln. Executives recently had to deal with frustrated dealers at National Automobile Dealers Association Convention and Expo in Orlando, FL. The frustrations stem from the lack of the new MKZ on dealer lots. Don Chalmers, a Ford and Lincoln dealer from New Mexico tells The Detroit News that with the lack of inventory, they're losing sales from customers who want to buy. Lincoln sales in January were to say in the least, abysmal. Total sales was around 4,191 vehicles, an 18% drop when compared to last year. MKZ sales suffered badly; Lincoln only sold 453 vehicles for the month, despite the MKZ having the biggest number of pre-orders in Lincoln history. The small number of sales is due to the numerous quality checks going on at Ford's Hermosillo, Mexico assembly plant to make sure each MKZ is just right. In fact, Ford is shipping some of the MKZs to a factory in Flat Rock, Michigan for a closer inspection. Analysts believe Ford is going to these measures to to avoid therecall issues that have plagued recent launches including the Escape and Fusion. Ford executives say Lincoln dealers won't have a full inventory of MKZs till April. Source: The Detroit News, Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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William Maley Staff Writer - CheersandGears.com December 3, 2012 Subaru is doing its best to keep up with the demand of the new BRZ coupe. Since its arrival at dealers in May, Subaru has sold 3,467 BRZs; well over half of the 6,000 BRZs that Subaru of America has asked for annually. "We are selling all the BRZs we can get.We have been sold out since the car was introduced," said Subaru of America's COO Tom Doll. Doll told Automotive News that they will be getting an extra 2,000 BRZs over the next four months to help keep up with demand. At this point, its unclear if Subaru of America will continue with the boost in volume. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com December 3, 2012 Subaru is doing its best to keep up with the demand of the new BRZ coupe. Since its arrival at dealers in May, Subaru has sold 3,467 BRZs; well over half of the 6,000 BRZs that Subaru of America has asked for annually. "We are selling all the BRZs we can get.We have been sold out since the car was introduced," said Subaru of America's COO Tom Doll. Doll told Automotive News that they will be getting an extra 2,000 BRZs over the next four months to help keep up with demand. At this point, its unclear if Subaru of America will continue with the boost in volume. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
