New vehicle inventory for GM brand GMC ran at slightly under 70 days supply for February 2023, up from 65 days supply in January 2023, according to Cox Automotive‘s latest inventory report.
The inventory at GMC dealerships is therefore running about 10 days supply higher than the 60-day level usually judged optimal by automotive sales organizations. 70 days supply means enough vehicles are available to continue selling for 70 days at current sales volumes assuming no restocking took place.
Via Cox Automotive
GMC’s slightly elevated inventory levels are likely related to dealers’ current difficulties in selling full-size pickup trucks and other higher priced vehicles. Full-size pickups from all brands had an average 79 days supply in February, while cars under $40,000 ran at 40 to 44 days supply and those costing less than $20,000 had 20 days inventory.
Despite an unsold backlog of more expensive pickups piling up at dealerships, incentives remain low in historical terms. Companies seem reluctant to take the plunge with higher incentives before their competitors do, or, as Cox economist Charlie Chesbrough remarked, “Right now, it feels like automakers are waiting for the other guy to blink first.”
GM’s response to mounting backlogs of pickup truck inventory includes a planned two-week idling of the Fort Wayne Assembly plant in Indiana, kicking off on March 27th, 2023. This pause will suspend production of GMC Sierra pickups, as well as the Chevy Silverado, the days supply of which is currently somewhere in the 90s.
A second, involuntary production pause is under way because of the temporary shutdown of GM’s truck-producing Silao Complex in Silao, Guanajuato, Mexico until March 21st. An unspecified parts shortage has caused manufacture of Silverado and Sierra pickups to halt at Silao also. Together, these two gaps in truck production may have the effect of lowering GMC’s days supply of inventory closer to optimal levels.
Across the U.S. automotive industry as a whole, February data shows an inventory of 1.8 million vehicles, amounting to 56 days supply. This is only marginally lower than January 2023’s 57 days supply. Nevertheless, the total number of vehicles in inventory is approximately 2 million units lower than the supply at dealerships in pre-pandemic February 2019.
Out of the major vehicle brands, Chrysler had the biggest amount of unsold inventory for the month at 133 days supply. The smallest inventory was that of Toyota, at less than 30 days supply.
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Comments
Pricing them out of the market!
Time for incentives
Lol – GM truck and SUV customers leaving for other manufacturers left and right. With interest rates climbing, GM is not going to get the little guy making annually $100k or less to buy a $60k+ truck or SUV. GM sales volume and revenue are going to drop like a rock in 2Q23 and 3Q23. I would not be surprised if GM is financial trouble soon. Look at the stock price and the management stock trades for yourself.
What numbers or data you have to back that? The latest official numbers still have GM selling the most trucks and SUVs than any other manufacture.
The latest official numbers include all of their fleet sales. Rental car companies are replacing severely aged and/or miles up vehicles. In Seattle last year we had a 2020 Yukon with 68k miles. That’s unheard of for an Alamo rental.
That is because GM has severely limited fleet sales to rental companies.
Ben B said ” GM truck and SUV customers leaving for other manufacturers left and right.” yea, because the others are sooooo much cheaper. LOL
With insane prices and dealers refusing to go below MSRP along with markups, this was expected. I don’t know why they refuse to stop pricing like we are still in the middle of the pandemic. It’s not just GM but all manufacturers. I have zero sympathy for them and we’ll see how they do once we go into a recession.
Dealer markups are not helping any manufacturers so it’s who can holdout the longest before the fire sale begins.
I hope these dealers crumble after what they’ve done during this so called man made pandemic.
Greedy greedy losers
Dealers still had expenses to pay….. So say what you want to make yourself feel good. it’s ok, But let’s look at the whole picture. Everything went up except salaries…..
Hurry up and produce the GMC Canyon that I ordered a few weeks ago.
Just so it can be held up in the production lot due to no EPA approval. It can keep mine company.
No pickups in st George utah. Just a rip off mark up. Same with the ford lot. Just worse. More dealer markup. If you didn’t hate the dealers before you will now. More people upside down than ever.
Just a move to force the average Joe to a bus or mugway in New York.
BTW. Can you go out of County or out of state and find a dealer that will give you MSRP or do you know some one like me who is a GM employee or retiree who can get you a supplier discount that would have to be honored at a little bit below MSRP?
Maybe while these plants are shut down they can get the 10,000 trucks that are parked at Fort Wayne and the old Kokamo plant out to the customers like me that are waiting. Mine was built 4 months ago and is parked there.
Overstocked ?? CRAZY – dealers around here are sitting with empty lots.
The manufacturers have turned buying a vehicle into a complete circus. My local dealers are empty, or at least only have very base models and few of them. If i want to order one, nobody can guess when I will get it or if it will show up with the equipment I want on it. The really big dealers are getting some but they are tacking on amounts that should get them arrested for price gouging. Very frustrating, then you say they are overstocked – BULL—-!