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.
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They did so by offering deep incentives and super cheap leases…Any receive the private offer mailer for $5000 off (on top of all other offers) the Vette in July ’17?
I know someone that got the $5000 offer on a LaCrosse, on top of all other incentives, and it was good for the 2018’s as well. He ended up not buying because the new model is lower to the ground (not good in Wisconsin), and missing some of the storage cubbies he had in his 2015. He considered AWD but that was only available on the top model.
So good news on inventories for December, but I’m curious to see how January turns out – if those incentives pulled ahead a lot of sales, production will need to be held back or they’ll be right back up there at the end of this month. The Christmas production break will help out, maybe delaying the high inventories until February.
I seriously can’t stand the way GM is forcing customers into top models to get things like decent exterior/interior paint colors, AWD, moonroofs or sound system upgrades, XM radio or remote start etc. The new 2018 Regal is a perfect example. You have to go up the the highest trim level just to get leather seats and they are not available on any other trim under the premium version or the even costlier GS.
GM guy thru and thru, but…. i venture to guess nobody on here is actually employed by GM as I am. And let me tell you, they couldnt run an ice cream stand in the middle of the desert. Moral of my story, the old GM is still very much alive inside the “new” GM. So dont get your hopes up too much.
Care to give any insights?
Up to $12,500 off certain trucks here in Canada last fall.
They would have had to develop the same policy in their former european division…
Well they did reach their goal but it isn’t all good news . Ask all the factory workers that were laid off right before the holidays . The factories that are not producing at capacity which is a huge negative for their operating costs .
Huge rebates for Corvettes to Buicks to pickups to get rid of their high inventory .
Let’s wait until we see their end of the year numbers too see how much it cost them to rid themselves of their over optomistic forecast .
Smoke and Mirrors to keep the stock holders and Wall Street from freaking out .
And their luxury division , were it not for sales overseas would be even worse of a drag .
I could care a less about the self driving nonsense but am more concerned what they are going to do about Cadillac, faltering sedan sales and there over achieving promise of 20 electric cars in the next 2 years. Also to see what the bottom line on spending to get the metal moved at year’s end.