When we closed 2016, we wrote one of the major stories to watch in 2017 would be General Motors’ swelling inventory levels. And they sure did swell. In mid-2017, specifically August, GM had a 104-day supply of vehicles. The healthy industry average is around a 60-day supply.
Here we are five days into 2018, and GM made good on its promise. The automaker entered 2018 with a 68-day supply of vehicles, the lowest figure in two years, Automotive News reported on Thursday. GM consistently reminded media things were under control, even as the inventory barely moved throughout 2017. It seemed impossible GM would make good on the promise, but sure enough, the leaner automaker cut inventory levels by 41 days over five months. A 20-day drop occurred in December 2017 alone.
It’s a stark contrast from the way old GM behaved with big promises and little results. This more focused GM has consistently met self-imposed goals, which likely has something to do with its healthier-than-normal share prices.
With inventory under control, 2018 will most certainly be another big year for self-driving car development, and we may even see a new electric crossover from the automaker. GM said it will introduce two new battery-electric cars over the next 18 months this past fall. It seems plausible at least one of the new electric cars will debut sometime this year.