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Mary Barra Says GM Inventory Won’t Return To Pre-Pandemic Levels

GM CEO Mary Barra says the automaker has no plans to return to its pre-pandemic inventory levels as it looks to make its business leaner and more efficient.

GM began operating with limited vehicle inventory amid the COVID-19 pandemic after the virus forced it to shutter its production facilities in 2020. The semiconductor chip shortage then took hold shortly after, further limiting its production output and leading to much more severe inventory constraints as demand for new vehicles skyrocketed throughout 2021.

The chip shortage caused GM’s U.S. sales to fall from 2,547,339 units in 2020 to 2,217,832 units in 2021, however strong pricing and demand for vehicles, especially its full-size trucks and SUVs, helped GM generate a respectable $1.7 billion in income on $33.5 billion in revenue. In light of this performance, GM CEO Mary Barra sees little reason to return to its old ways of filling up dealership lots with countless cars, trucks, crossovers and SUVs.

“We’ll never go back to the inventory levels that we were in the past,” Barra said in a recent online chat with Rod Lache, the managing director of business analyst firm Wolfe Research, as quoted by The Detroit Free Press. “In all the tragedy that surrounded COVID, we have learned a lot on how to strengthen our business, run leaner, work with the dealers, use data analytics to make sure dealers are ordering the right vehicle. There are so many elements where we’ve learned to run more efficiently that we’ll never go back from.”

While GM said recently it expects the chip shortage to ease in the second half of 2022, Barra believes it will take a long while for it to build its inventory levels back up due to high demand. That means consumers can expect elevated prices at the GM dealer for the foreseeable future – especially as GM has little reason to leave those profits on the table at this point.

“We do expect the favorable pricing environment to continue as inventories are going to take well beyond 2022 to rebuild,” Barra added. “Some of this is GM-unique because we came into COVID lean. We saw incredibly strong demand. So we’re working to build every single vehicle we can build because of the demand is so strong.”

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Comments

  1. Yeah… those Theme we have Today passing the front Door … EV Cars, Marry Barra, Pandemix, Virus, War Over There, Climate Neutral, Not Use Carbon Anymore etc… but, my impressions :

    A. The USA President sent 7000 Soldiers to Germany. How it could be Climate Neutral, if a lot of Galaxies, Boeing, Hercules and those old Aircraft, would bring Personell Stationary ? Does it not Pollute Air or so ?

    B. Are the guys there combating worried about EV Cars or Climate Neutral ?

    C. What is thinking Marry Barra with the Hummer EV to be sold to Russians or Ukranians ?

    D. How are Chevrolet sails over there ?

    E. Marry Barra wants USA only with EV cars, but in Brasil not… So where is the sign in Contract about Climate to be entirely Truth ?

    Reply
    1. Drugs?

      Reply
      1. .. no, never took, and we are against those who takes…

        Reply
        1. No more truck month!

          Reply
    2. Agree. Unless they want to compete between each other (GM vs Ford vs Dodge/Ram) to get / take market share from each other.

      For the near and mid term, things won t change for sure. On the long run, things could change as supply / demand will change too.

      On the other hand, high prices are not good. I mean not everyone can or will to shell out 50,000 USD for a truck or SUV that will last about 10-15 years… Everything is more and more expensive everyday, interest rates will increase too… Could be a problem for GM also in a few months. Not because they won t sell their vehicles but because many might not be able to buy them anymore…

      Reply
      1. yeah… is how see too, and see some trend of a turn around… very small but has already

        Reply
        1. Yah. But up da trend down, in soup!

          Reply
      2. Higher Interest rates are key.
        It’s going to be a lot more painful to be a glutinous slob and buy that $100,000 Truck/SUV.

        Reply
        1. They don’t have any affordable cars anymore. And who the hell wants to spend 80000 on a truck? I mean if you have plenty of money yes. But the regular people need some small affordable automobiles. Why is it so hard to make some small reliable cars?

          Reply
          1. Exactly they keep catering to people who write the 80,000 dollar truck off on their taxes like the farmer who complains he makes no money but yet drives a big fancy truck and trashed it on the farm and then when it’s all used up then maybe the poor bastard can buy it .

            Reply
    3. Good points. Google Translate can suck at times…

      Reply
  2. Most automakers will keep inventories down and will increase the practice of trying to get customers to order the cars they want.

    This is the practice of the automakers in Japan as they carry few cars in inventory there as everyone orders the car. Similar to Europe too.

    It is a more profitable way of doing business. But we will not see the major discounts and rebate we have grown accustom to because of this.

    Reply
    1. But used car prices will likely continue to stay high and offset the higher priced of new. So this will really only impact those that retain their vehicles til the die.

      Reply
    2. Most American car companies have rebates built into the MSRP, GM included. They are getting this inflated retail right now, with no cars on the lots, but when this changes they will need to either lower the MSRP or go back to rebates. If not GM will accelerate their years of market share loss.
      Ram outselling Silverado? Time for Mary to take her golden parachute and move to a warm island.

      Reply
      1. That may happen anyway (continues market loss); as a company lower inventory makes more sense as a business model. Japanese and others have been doing this for decades. Not as good for us as consumers..

        Reply
      2. Market Share doesn’t matter. Investors know the market is going to EVs. GM needs to show it will survive and thrive in an EV world.

        Reply
        1. What an idiot. Market share does matter and you sound like a fool for saying otherwise.

          Reply
          1. Market Capitalization
            Ford:71.4 Billion
            GM: 88.9 Billion
            Tesla: 837.0 Billion
            Face it, gasoline vehicles are about to become as obsolete as Land lines, Flip phones, VCRs and TVs with a picture tube. Wall Street values ICE infrastructure as a liability.

            Reply
            1. Let’s hear your prediction this time for it then petey. You walked your 5 year plan back in less then a week so lay it out for us tell us your major prediction this time.

              Reply
              1. Hey Mark,
                Even in your Caveman world. Market Share doesn’t take into account that some vehicles cost more than others. 1 Silverado costs about as much as 2 Camrys. Plus selling Silverados means you will never be forced to ride in a Fkng Camry.

                If were going to b e using gay pet names for one another do you prefer: Marky Mark, skid mark or X marks the spot.

                Reply
                1. No prediction this time? Aww I was really looking forward to another foolish prediction from you that you would change in less then a week.

                  Reply
                2. @Peter-G:
                  yours would be G-Spot,

                  Reply
                  1. Observer7
                    Does that mean you wanna come over here and give me a B.J, or do you like to watch like your name suggests?

                    Reply
                    1. No, Sir. You make me laugh. I am not of your league.

                      Reply
                    2. You’re such a tool.

                      Reply
                    3. Observer7
                      If you can’t stand the heat, stay out of the kitchen.

                      Reply
                    4. 🇷🇺🇷🇺🇷🇺🇷🇺🇷🇺🇷🇺🇷🇺🇷🇺🇷🇺

                      Reply
                    5. 🇺🇦 day 5: The Ukrainian flag still flies high over the the Capital in Kyiv. While Vladimir Putin asks for piece talks.

                      Reply
            2. GM has a PE of 7, Ford a PE of 4 and TSLA a PE of 165 which is absolutely outrageous. TSLA doesn’t really make money on cars, rather on selling carbon credits. Investments in TSLA are not a proxy for EV’s – rather – they’re an investment in Musk.

              Reply
              1. What does PE mean?

                Reply
                1. PE means Price/Earnings ratio. It’s the price of one share of a company’s stock compared to how much the company earns per share. The point being that since Tesla’s stock price is so over inflated, that using their market capitalization as proof that EVs are going to make ICE obsolete is bogus.

                  Reply
              2. GM has has a low PE ratio because they aren’t priced for growth. Their production numbers will continue to decline, same with Ford. Though I do think Ford will survive and won’t go bankrupt, but GM likely will. Tesla’s PE ratio isn’t even outrageous. Show me a company that grew their product deliveries by 87% YOY, revenue growth 71% YOY, net income up 665% YOY. I can go on. This was with just two factories. Tesla will be producing products out of two newer, larger factories quite soon.

                Mind you, Tesla’s unadjusted Q4 2021 net income was $2.3b, of which $314m was from regulatory credits. So no, Tesla does NOT rely on selling carbon credits to make money. That $314m is also down -22% YOY. So Tesla is making far more money while selling less credits. You can’t make this up. Tesla’s Q4 ‘21 net income was more than GM’s unadjusted Q4 ‘21 net income, which was $1.7b. Tesla is rapidly growing, while GM is declining. The numbers are all there.

                In 2018, Tesla produced 254k EVs vehicles vs GM’s 8.4m ICE vehicles. That works out to matching 3% of GM’s ICE volumes. Last year, Tesla produced 936k EVs vs GM’s ~6.28m ICE vehicles. So Tesla matched 15% of GM’s ICE volumes, and GM’s EV volumes (and models that you can’t even buy right now) are laughable. No matter how you want to spin it, Tesla’s ALL ELECTRIC production numbers will surpass GM’s ICE vehicle numbers, and GM will not be able to catch Tesla’s production numbers.

                Reply
                1. Predictions are a difficult business, especially when concerning the future.

                  – Yogi Berra (?)

                  Reply
                  1. If you totally ignore the YOY trends, economics, and initiatives whilst sticking your head in the sand (or blindly listened to our president about how Mary and GM “led”), then of course you won’t be able to reasonably extrapolate what is happening, and will continue to. GM is aiming to globally produce 1m EVs annually by 2025. Tesla approximately achieved that in 2021, and will deliver around 1.6m this year. Just look to GM’s own targets and compare them to Tesla’s. It’s that simple.

                    Reply
                    1. Look at today’s facts:
                      while in Germany, Tesla model 3 was the top selling BEV in 2021, with slightly under 10% of market share (among BEV’s), it was tightly followed by VW UP, of which VW had stopped taking orders for because of overload of the production facility (and because they apparently preferred to sell more expensive models). And the legacy manufaturers will bring more and more BEV and also FCEV on the market. And hybrids.

                      Most BEV and PHEV are being sold with a government subsidy of 9’000 €. This might end some day.

                      And the violent hate of Mr. Musk against working people and his “I don’t need to respect the law” attitude and treachery will backfire also regarding the sales of his cars.

                      Reply
                    2. For some reason, I can’t reply directly to your comment below, but let me just squash the cherries that you picked. First, the Germany cherry. You’re purposefully choosing a market on a continent in which Tesla strictly imports cars into. Tesla did not have a vehicle production factory in Europe in 2021, whereas VW has multiple. That will change this year with Tesla’s Giga Berlin factory once the German bureaucracy stops playing the protectionist game. You’ll see that Tesla’s delivery numbers will increase in Europe, as it has continued to over the years even without a factory on the continent.

                      Next, the small, pretty insignificant cherry that you picked, FCEVs. Fuel cell vehicles will not gain traction. Nobody wants them. Look at the sales of the Toyota Mirai and others. They are not desirable vehicles and hydrogen infrastructure buildout for passenger cars is not well supported at all, not even by Toyota. That’s why VW and other legacy automakers, as well as Chinese EV makers well on the rise, have chosen BEVs, not FCEVs. FCEVs are irrelevant.

                      Lastly, Musk’s “violent hate” “against working people” which is not even a cherry pick. This is BS that you conjured up. Musk is aware of the corruption that the UAW is blighted with. The UAW is the only union that has workers in auto manufacturing. They will never, ever allow another union to unionize auto manufacturing workers, because they are corrupt and seek to make more money for execs through increasing union due income by gaining more union members. The UAW would have slowed Tesla down, and possibly caused the bankruptcy of Tesla, even on purpose. Why? Because the truth is that the UAW did not want to see EVs take off. Tesla’s bankruptcy would have made the UAW happy, but now Tesla is in a very enviable position from the standpoint of the UAW and legacy auto. Legacy auto’s chances of bankruptcy, particularly GM’s, is quite notable, while Tesla’s chance of bankruptcy is now close to zero.

                      Reply
                    3. @Wayne of March 2, 11:34 am Pacific Time
                      ———-
                      Why sales statistics of Germany?
                      Simple: Germany is the largest single national market in Europe, and the Motor Vehicle Authority (Kraftfahrtbundesamt : kba.de ) offers the best statistics on the automobile market.

                      The VW UP is only one single model which was in a number of months the best selling model in Germany, hindered because, as I said, by production limits, due to the semiconductor shortages.

                      So lets look at market shares of companies.

                      The VW and her subsidiaries has not only the largest market share in general, but also in BEV: 31.8%, of this VW brand alone at 20.3%.

                      Second also in general market share, also in BEV is Stellantis with together 12.9%, closely followed on third place Tesla with 11.2%.

                      (For VW and Stellantis I have added the percentages instead of calculating the overal percentage from the total, so that there might be differences due to rounding of the percents).

                      And the future? Is uncertain, as we know from Yogi Berra. I expect that Tesla will stay, just like Apple, as a cult around the guru Elon Musk, and that the relative market share will drop, since all other companies are throwing BEV and FCEV on the market, and they have more precence with dealers everywhere. Interesting what Carlos Taveres answered to a question on this competition at the end of the Q&A-period of the “Long Term Strategy” event, which you can watch from the stellantis dot com website (2 hrs).

                      Stellantis has also delivered the first FCEV supplied electric mid-size vans to fleet customers last year, and announced in the above mentioned event that the Fuel Cell shall also provide power in the large vans, which you know as the RAM ProMaster. BEV versions of that van are already available.

                      In relation to public institutions and the working class, Musk acts as a dictator “I am important, so no democracy must restrict my actions, I do as I please”. And he found cowards in the Brandenburg regional government who gave him one provisional building authorisation after the other, so that the factory is now ready, but its construction not authorized. I hope that the government finally musters a little courage at least and does not give the authorisation and orders the factory to be torn down and the forest restituted.

                      Musk as Bezos does not tolerate workers at their places to think for themselves as a class. I Grünheide, Musk could not prevent that union members are among the 2000 or so recruted workers, and organizes now a works council election where only the few hundred managers, all Musk cult followers are allowed to vote, because for the right to vote one must have a seniority of, I believe, 3 months. This “Betriebsrat” of only management people and cult followers is then to represent 10 or 12 thousand workers in the plant. An outrage is that. Are we back to Hitlers rule?

                      On the UAW: sure they are sellouts. But: If they wanted to promote only the “Big 3”, then why does the UAW not unionize the South?

                      __————-+——–
                      Addition on March 4:
                      • all market figures in this post are for the full year 2021.
                      • the overall market share of Tesla was 1.5%, slightly more than Mazda

                      Reply
          2. Market share does not carry the weight it use to. Rona is what’s important. (Return on net assets)
            They are focused on (profit) vehicles. Profits are higher than ever with reduced sales and lower market share.

            Reply
      3. Nothing wrong with a warm Island….

        Reply
      4. GM outselling Ford in trucks two years in a row.

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    3. They do realize that’s how you loose sales right??? I call Bull. Marry made the exact same claim when she first started. A year latter GM was producing high volumes of vehicles for high discount. They can’t do this without loosing sales to Ford, Stellantis…… so plain dumb this won’t happen.

      Reply
      1. Stellantis will prefer profits to market share. When PSA (which is now merged with FCA to form Stellantis) took over Opel and nearly all GM facilities in Europe, they forced the policy of profit over market share. 5 models or so were axed (especially those assembled at GM Korea), the market share dropped, but economy journalist praised the return to profit one or two years later, also after a lot of blood letting at the ITDC (International Technical Development Center), especially after the various ongoing development proyects for GM ran out.

        So, with Tavares as the same CEO above Stellantis North America, expect that they prefer to not sell than sell with losses or minimal profit.

        Also to keep up the residual value, which is intended to give the customer of a factory new car the confidence, that he will realise a good prices when he sells the car on the used car market.

        The latest new car, the Alfa Romeo Tonale, is equipped with a Block-Chain secured record of all service and other events with the car, so that the buyer of the car as a used one can verify how the car was serviced, and the buyer of the new car, that the residual value of the car will by at least satisfactory.

        The automobile industry is a-changing…

        Reply
      2. If this does happen, the life of a dealership as we know it will change dramatically. Smaller lots and fewer sales people. Service departments will become the core business and most of them do not deserve to survive. In the end – fewer dealers – and even higher prices.

        Reply
        1. Manufacturers are increasingly, to my perception, moving to an agency model of car sales.

          The dealership model we are talking about resides on the dealer buying a car from the manufacturer and selling it to the final customer. Inbetween it is the dealer’s property.

          The agency model of automobile sales means that the sales contract with the finaly customer is concluded between the end user and the manufacturer, the dealer acting only as sales agent, just like a real estate agent, who does not own the house or plot of land he sells, he is only negociating the contract with the customer on behalf of the manufacturer.

          Reply
        2. Actually fewer dealers means lower prices.
          Online shopping like Carvana is the future & there’s more competition to come.

          Reply
    4. In Germany, too, more cars are bought by order with specific features as wished by the customer. This means also waiting times of several months, in the past even years.

      Cars are seen and treated as a long time investment, nearly like building a house.

      Reply
  3. Easily saw this coming…Absolutely no reason to flood the market with vehicles only to offer huge rebates to move them off the lot. Manufacturers got a taste of selling less units for more profit…so why go back? Smart business move.

    Reply
    1. One reason….. as chips come back, you know Ford/stellantis are looking for sales. They will churn them out and take market share. Anyone remember the first thing Scary Mary promised when she was made CEO???? Cut incentives, higher ATP?????? What has happened since???? More incentives and more of the same. This is her giving her “SOTU” address… a whole lot of nothing and back patting

      Reply
      1. Steven you are correct, competition will force GM’s hand. One thing that would help push more customers to order vehicles would be to allow any incentives available at the time of ORDER to apply to the ordered purchase. Not knowing what the incentives would be two months down the road (or more) has prevented me from ordering a truck in the past.

        Reply
      2. Well said! I think you’re totally right

        Reply
  4. They say this, but they need to worry about making desirable cars if they think they can keep cashing in. People are paying a premium for a lot of junk they are peddling because no one has stock. We are already seeing them offer small discounts when other manufacturers are having no discounts or have dealers doing markups.

    The reality is they want to keep their high profits but when inventory increases from other manufacturers someone is going to flinch first and want more market share. GMs products outside a very select few doesn’t command a premium.

    Reply
    1. We actually carry very little of what is considered ‘junk’ and mostly order Luxury, Full Sized Box Frame SUV and Trucks.

      As for the standard SUV’s RS Equinox (looks decent easy to sell) (blacked out Terrains and Denalis again easy to sell and many customers enjoy the look)

      I would rethink or redo the Blazer, Acadia, Traverse and Enclave.

      Reply
      1. “I would rethink or redo the Blazer, Acadia, Traverse and Enclave.”

        All are inline for a refresh or re-do soon. Those are top selling vehicles they need to keep in and keep competitive with in their portfolio.

        Reply
      2. The Blazer definitely needs a redesign, it’s just a boring crossover that looks like every other crossover. The traverse is still their most popular SUV and they can’t keep them on the lot around me. Hell, the dealer has been hounding me for a year trying to buy our 2019 because they cant get enough. It definitely needs a small exterior refresh and a major interior refresh. Personally I think it’s a really good looking exterior.

        Reply
    2. well, remember this phrase, ‘ having a lot of money does not mean having good taste ‘ so …

      Reply
    3. well, remember this phrase, ‘ having a lot of money does not mean having good taste ‘ so …

      BMW, Corvettesferraris, lamboghinis etc will continue to sell as coffee or coke in the bar at square corner

      Reply
  5. Greed, I’ll never pizza order my vehicles. At most a salesman would call a regional storage facility to see what car they have and bring it in. Not unless it’s a special muscle car or something I’m not waiting 6 months for a Malibu with a sunroof….

    Reply
    1. I think the whole point is GM will hold the inventory and not the dealer. The dealer doesn’t have to put money on the windshield for configurations that don’t sell off the lot. You will not have to wait for a vehicle to be built. It will just be shipped to your dealer of choice from a central location.

      Reply
  6. If that’s the case dealers need to stop using low inventory as an excuse not to accept discounts. I understand that it’s their choice but they need to say the real reason behind it instead of just saying low inventory numbers

    Reply
  7. My concern is this. We are in a instant gratification world today when we order from Amazon and even if it is delivered next day it is not soon enough for some even tracking the truck to the house.

    Will people be willing to wait the 5 weeks if they want to get a specific vehicle?

    I have always done the dealer search as generally what I want is sitting some place just waiting to be sold. It is not like the old days where options are line items.

    Reply
    1. No, they won’t be willing to wait. Which is why whoever the first manufacturer is to flood dealer’s lots will be the first one to steal customers from another manufacturer who chooses not to. My guess is Ford will have the leg up on GM when it comes to this.

      Reply
      1. Yep. Next new vehicle I purchase, it will be the one on the lot I get to sit in and test drive. You don’t have the vehicle I’m interested in on the lot for me to do this, I’ll find a different deal, or even manufacturer if i have too.

        Reply
        1. Having a test drive and some stuff in the showroom isn’t related to having 300 vehicles to support in inventory per dealership.

          Reply
      2. Actually, Ford too announced ” made to order” not to long ago. Seems like FCA or the others didn’t fall for the 10 months to order bait..

        Reply
      3. Goes to show you if it takes a pandemic to make them realize they were doing things so wrong before how incompetent they are

        Reply
  8. … yeah in a kind of ‘Just in Time’ … the Inventory can be very low.

    1. You open Ebay or Amazon, the car is there
    2. You pay with Amazon pay, for those 3 guys send rockets to sky 100 km high.
    3. If you paid Prime, you receive you car in two days… if not you wait 7 days, but as you paid, Internet exists and all online arrives the Production line in GM or other and your car enter already the paint shop now
    4. Truck comes and delivery it direct your home
    5. you sign the bill, see all, makes a laugh, starts analysing… after 1 day you rewrite online the Retoure Form

    So why inventory ?

    Reply
  9. They call this “pricing power”.

    The power to impose prices on the potential customer, and refusing to give discounts.

    Reply
  10. When Mary Barra opens her mouth…

    Usually a well planned Lie rolls out. It’s refreshing that a company that Kills so many Americans is headed by a woman. This teaches us that woman are great Liars, and Kills too.

    She deserves her $20 Million Dollar Bonus.

    Reply
    1. Kills so many Americans? Explain this with a straight face and not from a one sides view as I have a heaping suspicion what ever you say will apply to all manufacturers. Sometimes people are just sexist. Guess we will know in short order which camp you come from…

      Reply
      1. Like the ignition switch fiasco? Let’s here the excuse you have for that.

        Reply
        1. Every single manufacturer has had different issues that have killed consumers. Sometimes, shitt happens and thats all.. unfortunately.

          Reply
          1. Nice I like excuse. Money makes everything on right? Gm paid their fine so who cares who died lmao what a douche.

            Reply
    2. A prediction about the future can’t be a lie. The events which could falsify, have not yet occured, the are hidden in future.

      It can be erroneous, but not a lie. Predictions are a difficult undeetaking, especially when dealing with the future (it was Yogi Berra, I believe, who brought this enlightenment).

      But more than a prediction, it is a statement of intention, that the manufacturer, ro increase its “pricing power*.

      Reply
  11. Don’t worry. When the sales start collapsing, they will offer massive rebates the same way they did in the past.

    Reply
  12. … WOW… ^^^and people says me is taking the drugs… well like women, most do not trust, but men do not trust too.
    but between having a woman ( of course, those natural hairs, no fingers paint, no tattoo, no lipstick, no make-up at all, blonde with long hair, blue eyes, or green or grey eyes, those to be found in norway maybe, sweden, finland, latvia etc could be ok, non smoking of course ) and men with mustache, bart, piercings, tattoo, whisky, gin, tequila etc drinker do not trust too.

    so. let’s say of course we do not have to trust in humans, only in animals sometimes, but humans are worse. So …
    but it is valid for both, or the nowadays severals sexes, not only one side… everybody finally saying…

    A Tree … let’s say we trust 99 %. No a Tree does not lie. Neither an animal. Only humans do.

    Reply
  13. Is it me or why is they only company building more manufacturing Tesla? Why is GM not increasing production? Could it possibly be they know there days are numbed and this would good for stock in the short term?

    Reply
    1. Their days aren’t numbered. What a dumb comment.

      Reply
      1. Of course not they would get bailed out again lmao.

        Reply
  14. I will not order a vehicle and wait.
    You are being held captive.
    Car comes in with the wrong specs?
    What are you going to do wait again?
    Comes in damaged?
    They tell you wait time is now a year?
    All after they have your money.
    I refuse to do business this way

    Reply
    1. They don’t take your money first. You don’t pay a dime until the car you ordered arrives and meets your standards..

      Reply
      1. I totally believe what you’re saying.
        But the last time I wanted a Toyota in a particular spec I had to put down a deposit.
        It was a long time ago though.

        Reply
      2. You aren’t getting anything ordered without a $1k deposit.

        Reply
        1. Yeah, and you realize that deposit is refunded if you don’t approve of the car, right? I see you’ve never purchased a new car.

          Reply
          1. Dude who doesn’t know that!!! It actually didn’t need to be said. What’s your point?

            Reply
    2. You may be right for the very first purchase of a car.

      But after that … wouldn’t you rather plan ahead, when the current car gets older and has more and more repairs, so you go and look what this and that manufacturer has to offer, chose one car, and order it, so that you have it in time, when your current car has run its time.

      Unless you have an accident with a total crash, or the car has burned down, or has been stolen. But those events are rare events.

      Reply
  15. This might work out better for consumers. If you can order exactly what you want, and ditch some of the overpriced option packages GM loves to add to their cars, you might get exactly what you want at a better price with no haggling.

    Reply
  16. It’s fine to order if gm can deliver in 6 weeks. I ordered cars over the years and had no problem. That was the old days, however.

    Reply
  17. Their US sales won’t return to pre-pandemic levels either. Their sales have been on the decline since 2015. They’ll finally get an uptick in 2022 but only because 2021 was so bad.

    They obviously don’t care about their shrinking sales volumes and customer base. Only higher ATP’s, margins and continuous cost cutting that’s all too obvious in many of their products.

    CY GM sales, US

    2015 3,067,705
    2016 3,026,263
    2017 2,986,737
    2018 2,934,742
    2019 2,870,165
    2020 2,537,590
    2021 2,269,963

    Reply
    1. So using that logic, Ford doesn’t care about their sales volumes. or market share either, right?

      Ford* Share % GM Share %
      2021 1,906,942 12.6 2,269,963 15.2
      2020 2,045,265 13.9 2,537,590 17.3
      2019 2,422,698 14.1 2,870,165 16.9
      2018 2,497,318 14.3 2,934,742 16.9
      2017 2,586,715 14.9 2,986,737 17.6
      2016 2,614,697 14.8 3,026,263 17.3
      2015 2,612,116 14.7 3,067,705 17.7

      *includes Lincoln

      Reply
      1. Total sales share. Wondering what their share of the US retail sales are? That is where the larger profits are.

        Reply
      2. Apparently not..since they’re both losing share.

        On the other hand, the my comment was focused on GM’s market performance because this site is called “GM AUTHORITY”.

        Reply
    2. Both Ford’ s and GM’s USA sales dropped 26% from 2015 to 2021. That means, according to your post, that “only higher ATP’s, margins and continuous cost cutting that’s all too obvious in many of their products.

      Reply
  18. To say GM will never go back to prepandemic levels is very naive. But that’s Mary Barra for you. Once the other manufacturers like Honda, Toyota, Nissan, etc. fill up their lots and it takes 6 weeks to buy a GM vehicle, Mary may change her mind.

    Reply
  19. QUOTE “However strong pricing and demand for vehicles, especially its full-size trucks and SUVs, helped GM generate a respectable $1.7 billion in income on $33.5 billion in revenue. “ UNQUOTE…
    That means consumers can expect elevated prices at the GM dealer for the foreseeable future – especially as GM has little reason to leave those profits on the table at this point.
    THANKS ALOT GM….Millions of Families are Struggling , The Economy is in the Tank, Inflation is at an all time High ,Gas has Skyrocketed, and We can now expect elevated prices at the Dealerships… Those Dodge and Ford Trucks are looking better and better .

    Reply
  20. All I know is I’ve been trying to order a truck for a year….even though the truck is sold GM dosen’t care about their customers, the dealership is only alotted what they can order….that really passes me off as a repeat customer!

    Reply
    1. Is there a particular item on your order that is on constraint and holding up the order ? A responsible dealer should be able to give you that information and allow you to change the order to expedite it. Have you tried having another dealer order it ?

      Reply
    2. I’ve been a Gm customer all my life I’ve ordered at least 12 new cars or trucks never ever had to put money down til now after 14 weeks I finally found out my trucks not going to be built what a long time for nothing . I knew this a month ago when the plants started the refreshed model it’s to bad no one informs you so you can go somewhere else sad

      Reply
  21. Good plan till till one of the oems blink and fill the lots.
    If you are going to pay MSRP get a Toyota who always have the highest resale.
    When inventories get high they wil get sick of paying the assemblers 95% to go fishing or sit on a barstool.

    Reply
  22. GM lost its market lead for the first time since the 1930s and Toyota sales increased 10.4%.

    I’d say the strategy is failing.

    Reply
  23. Hopefully this chip shortage crap be over sooner than later . And these car manufacturers pick up the building. I hate seeing these stealerships taking advantage of the customers with mark ups and other sneaky tactics

    Reply
  24. “We do expect the favorable pricing environment to continue”

    Favorable for them, since the abhorrent markup over MSRP is seen as standard business practice for dealers. I’ve yet to see a dealer be on the up and up and treat the consumer as a valued customer.

    Reply
  25. So they’re going to create artificial supply issues to drive prices up.
    What a surprise.

    THIS is why our inflation rate is so high right now.
    Companies keeping the supply of goods low to drive up the prices of them.
    It’s disgraceful.

    And people want to blame Biden for the inflation.
    It’s not his fault.
    It’s these greedy corporations’ fault.

    Reply
  26. Just wait for a year or two mary.
    You’ll be running after people on the streets cathing their hands and begging to buy your garbage

    Reply
  27. Really do not care about G.M. and their unreliable, poor quality vehicles. Just before the pandemic I purchased my first Honda CRV. Last year I purchased the wife a Toyota RAV4. After sampling the quality and reliability of these two vehicles I will NEVER buy another G.M. product again.

    Reply
  28. Yep. This is pretty much Ford’s strategy everytime they introduce new vehicles. GM was late to the party.

    Reply
  29. GM’s idea is like in Europe where there are few new vehicles at dealerships.
    The cost of pre-sale stocking at the dealer is not low. Furthermore, storms and vandals also cause damage that reduces the value of the vehicles.
    It also has to be said that you should always put your dream vehicle together and now you can.
    The customer is king!

    Reply
  30. Desired a 2022 GM Sierra; put down $100 deposit to secure a chance to place an order. Time came to place an order and the features, accessories & color were “…no longer available to order…”. My $100 deposit was refunded. Will now go with Ram or Ford as being a decades-long GM customer…well, nothing lasts forever.

    Reply
  31. When GM is only producing EV’s how many sales do you think they will have.

    Reply
  32. Her comments are just a poor excuse for poor slaes. Not everyone wants a truck. What about the next time there are supply chain issues, and there will be. No cars on the lots. The incredible shrinking gm. Or is all this some kind of master plan for the ev shove?

    Reply
  33. Except for maybe a c8 someday it doesn’t matter to me what gm does as I’m not a gm customer. What pisses me off is paying dealer markup. The price should be the price! All dealers are using these shortages to jack up prices, not just gm. It better end soon.

    Reply
  34. I have been in business for 40 years, and found one simple formula for doing it. Have the product a person wants, when they want it, at the price they want to pay. Fail in any one of these, and the most loyal customer will leave you and go someplace else. This is even more true in our instant gratification, internet driven enviorment. If I were a GM dealer, always forced to expand my lot and update my showroom, and the company did not have the ability or desire to furnish product to put in it, I would be looking for another brand to sell.

    Reply
  35. Well… it will definitely change the supply/demand curve and make it more difficult to get the configuration you want. I think it will also promote even more dealers adding markups to MSRP because people don’t want to wait and are willing to pay more to get it now. Will also make it more difficult to decide on certain colors and options sight unseen. Understandably less wasteful for GM, but more difficult and expensive for the consumer.

    Reply
  36. That’s fine, but I’m still not going to buy a GM product unless they fix their China problem.
    Be more like Tesla. They have lots of room for improvement, but at least Teslas are engineered and manufactured in the USA.

    Reply
    1. Hey Fred, 51% of all Tesla cars sold world wide are made in Tesla’s Shanghai factory.

      Sure Tesla has its first factory in the USA, in parts of what was NUMMI, the GM-Toyota joint venture in Fremont, CA. And I head of a factory in Texas. Is that one working already?

      Does anybody know, at which percentage Tesla cars sold in the USA are made in China?

      Reply
      1. Observer7, I like how you can Google that figure but can’t figure out that Tesla imports 0 us market cars from China. Chinese exports go to Europe etc.

        Meanwhile, non-US GM is controlled by SAIC and other Chinese state interests, and is actively moving their top tier engineering and production from the US over to China. GM is the largest Chinese auto importer in the US.

        Reply
        1. Maybe its true that no Tesla is imported into the USA. But I can’t verify that claim.

          As to your fantasies about GM China, they are just fantasies. I just see, that you mean not only GM China, but any GM operation outside the USA. GM’s production plants e.g. in Brasil controlled by Chinese state interests? That is ridiculous.

          GM is present with their own offices in China, as GM China, and they control tightly what is going on in their joint ventures. The Buick, Cadillac and Chevrolet branded cars are all licenced from GM LLC, Detroit, and the SAIC-GM 50:50 joint venture is technically lead (I mean the automobile technicals) by GM.

          I like to remember what engineers of the Chevron-Sonangol petroleum and gas extration operation in Cabinda, Angola, once told me: Sonangol is the 51% owner, and we are the 49% operator.

          Such a model is applied in many other industries, too. For example the garbage collection and disposal department of the city administration of Frankfurt, (Germany) is 51% owned by the city, 49% operated by one of the largest private enterprises in that industry on European scale. That company is also said to operate the largest gold mine in Germany: the electronic wastes, computer boards etc, which contain a lot of gold and other precious metals.

          Reply
  37. What a joke I don’t care about dealer inventory just build my dam truck waiting time is ridiculous quit saving all these parts to build denalis not all of us can afford them. Hope these stupid electric trucks take a crap cowering to the potato in the White House supporting stupidity

    Reply
  38. I have reviewed the comments, but I have to admit I did not read everyone word for word. I was looking for comments on a particular topic, in the upcoming GM style of manufacturing. What I didn’t see is the repercussions it will cause if GM designs the future market that will require you to order a new vehicle, instead of walking onto a lot and picking one out. I know Dealers like to have a full lot of cars and trucks so a buyer can select, buy, and take delivery. When Dealers didn’t have the choice for customers, they went to another car lot. When a Buyer gets the urge to buy they want to buy, not wait. The days of Dealer trades will be gone, as a Dealer will have nothing to trade. I know that for a fact last June when I purchased a new Suburban. And has GM thought about the Salesperson. How do they make a living, when they have no new cars/trucks to show a buyer. “Here is a picture Sir, on what it will look like ” The colour will be close to the paint chip picture”. (Good Luck selling a car) .That effects the bottom line of a Salesman in the profession, the mechanics, and the Dealers. No inventory = no profit , but when the GENERAL demands the Dealers all change their buildings and signage the Dealer has to comply at their cost. Sometimes I wonder if there are CEO’s & and Company Presidents are quietly getting bonuses from their competition to help destroy their company. But who am I, I am only a customer who has been buying GM for 50 yrs.

    Reply
    1. Many questions need answering. You are right, there will be many casualties at all levels of the automobile business.

      Reply
  39. GM products are over priced and thats why they can afford such large incentives…. if that goes away people will flock to other brands like Toyota…. im sorry i would never buy a GM product at msrp, not worth it

    Reply
  40. GM is run as efficiently/brilliantly as our Federal Government. Oh wait, maybe even by our Federal Government???

    Reply
  41. Mary Barra stated in the earning report,” GM now has four large pick-ups plants running flat out, building all the pick-ups they can build. When she was asked will the new refresh editions add more volume to the GM truck’s build, she stated we are already building at 100% capacity. In all four plants. This was stated four weeks ago. With Arlington and Bolling Green running at 100% capacity, this gives GM a lot of over $50,000 autos, and some over $100,000, many over $60,000. It is the ICE machines that will carry GM for the next 5 years!!

    Reply
  42. I know I don’t care what she says… I’ve bought my last GM vehicle…. never again…

    Reply
  43. We have evolved into a society of instant gratification,grocery delivery,food delivery,Amazon prime(get your items faster),and many others.Today’s consumer has to wait because of manufacturing constraints(lack of computer chips),when the chip problem is abated,those that have been waiting to buy will want instant gratification because in their minds,they have waited long enough.Whoever has the product in stock will get the business.Brand loyalty will not be an issue.

    Reply
  44. Completely disagree with this reduced or low inventory strategy GM is promoting.

    This continues to weaken dealer network & makes dealer trading impossible.

    You need to re-think this & HEAR the other side’s argument. Toyota took GM this year.
    Soon it will be Ford beating GM. Please wake up. Run some war game simulations.

    GM is on it ways to a 4th or 5th place in the US Industry. Almost as bad as GM abandoning ICE.
    Has management noticed Ford Isn’t?? Give consumers choices.

    Reply
  45. My family have always been Chevy owners I have bought a new Chevy truck every 3 years for the last 20 years I bought a trail boss in 2021 but the ended this year the truck was so uncomfortable and bad on gas and broke down on me two weeks after I bought it I traded it in on a new Toyota it is 100% more comfortable and I get 5 more miles to a gallon so my point is if you keep over charging and crapping on you blue collar consumers the very people that paid for your bailout in 08 you will be bankrupt again

    Reply
  46. All I can say is… America unite.
    Dealers are gouging the American public with high add on and selling at retail.
    What would you think of a man, that takes advantage of a person that is going through tough times? A%#hole?
    But we look at car manufacturers as good Samaritans. Wrong?
    You want rebates and dealer invoice pricing back?
    STOP BUYING NEW CARS.
    They will react.. FAST

    Reply
  47. I am sure they will, in the short term. GM always sells this idea that they are a high end manufacturer with a high earnings per unit. Then Ford starts dominating the market by taking over market share and it will be a race to the bottom.

    If they want to keep these inflated MSRPs they need to cut off the 10% markup they added because of fleet purchases. Either you’re a low volume high profit company or high volume low profit. Instead GM is trying to do both which will eventually fail.

    Reply
  48. Okay, so this will have an effect on the used car industry, because before the pandemic as a model year timed out and the new one was launched, that previous year would go to used car lot.

    2nd, I don’t care how much production she cuts out who the hell can afford these brand new cars, trucks, and SUVs? For those of us down here in the working class, $ 40,000 – $90,000 for a truck or SUV……Chevrolet to be the working man’s truck and SUV, not any more.

    Reply
  49. I went to sit in a CT5-V with intent of ordering one and waiting 4-6 months. Couldn’t find one to sit in within 5 hour drive. Went to the BMW dealer, and they had many in stock to test and buy, and we left in a new BMW with 7 miles on the ODO.

    Reply
  50. What inventory? just came from GM dealer, they told me 13+ weeks delivery on orders & price will need to be negotiated ON DELIVERY. They want a down payment but will not agree on a sales price or trade in value UNTIL the delivery.
    guess I will go look at a Chrysler or Ford……………………

    Reply
    1. … and let us know what you hear at Chrysler or Ford.

      Reply
    2. Now that’s ballz.

      Reply
  51. Turn coat Mary talking crap again. The second Ford or Chrysler start populating the lots again and take sales away she will back peddle like always.

    Reply
  52. The problem is stupid people keep paying these outrageous prices for a shiny new car appeal!

    How about all idiots stop buying new vehicles for a year or two, and then you will see vehicle pricing go down, and little Mary won’t know what hit her!

    Reply
  53. I ordered a custom trail boss on December 16 order was accepted in January and now still waiting I don’t understand it has nothing on it is that why it’s taking so long putting all the high dollar trucks ahead I’m so disgusted

    Reply
  54. Makes a lot of sense from a business and profits perspective to keep demand high.

    Reply
  55. Every few years GM changes up the design and presentation of their vehicle line up.
    Now it is time for GM to change up who occupies the President/CAO’s Office to present the customer with Management that cars about the consumer.

    Reply
  56. GM can’t even build the vehicles for the customers that we’re ordered in December of 2021 , how would Mary even expect to fill the dealer lots for inventory. They keep using the global chip shortage and pandemic, supply chain etc. etc. etc. one excuse after the other.

    Reply
  57. Remember SEARS was run to the ground by the CAO/President by the name pf Lampert, and Sears is now history.
    I wonder if Mary is related ?

    Reply
  58. ie we make too much money making nothing….GM dealers will continue to sale competitor’s used cars and gm will make money by showing renderings and making press releases and then licensing the images. have yet to see a new GM vehicle at area gm dealerships in months

    Reply

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