Low factory inventory turns into dealers needing more cars

Automotive News shows us that automakers are nevertheless shy about making cars despite the economic c climate of recession and also the taxpayer auto bailout with it. It seems like it is more common practice to have low factory inventory now. You will find more individuals buying cars but dealers do not have the cars they need to sell them. 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. Less sales were made because of this.

Business goes down with low inventory

Dealerships are losing business through low inventory. Customers leave unsatisfied with what happened. Probably 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. Automotive News had a dealer tell them that if there were more cars, they’d sell more cars but automakers “have driven supplies too low” for selling. 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.

Factories help

Automakers have to help dealers although they’re trying to stay away from losing money with overproduction. Dealers are nervous too. They’d rather sell all the cars than get more cars than they can sell. Right now is a time that we have to move forward from the high incentive and low resale value cars. Automotive News reported this after talking with Tom Henderson. Some adjustments are necessary, of course. For instance, in order to meet recent demand for the Chevrolet Equinox and GMC Terrain in some areas, General Motors renovated an unused area of an Ingersoll, Ontario, manufacturing plant so that more bodies could be made. There isn’t any room within the plant to finish bodies in there with paint and finish. GM has to send the bodies two hours east to get all this done.

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