As GM Authority reported earlier this month, the logistics of transporting vehicles to dealerships remains General Motors’ most pressing difficulty. Now, this challenge appears to be easing, as dealer inventory improved almost four percent over the course of Q2 2023.
According to General Motors statistics, there were 427,972 vehicles in stock or en route to dealerships as of June 2023. This is a notable increase from Q1 2023 levels, where the Detroit-based automaker indicated a dealer inventory of 412,285 units.
It’s worth noting that The General relies heavily on transit vehicles in its calculations for inventory levels. In fact, all four of GM’s U.S. brands – which includes Buick, Cadillac, Chevrolet and GMC – were listed in the top 10 in regard to in-transit inventory mix, with Chevy ranked third at 40.1 percent, GMC ranked sixth at 35.5 percent, Buick ranked seventh at 34.9 percent, and Cadillac ranked eighth at 34.1 percent
As a reminder, GM has struggled with maintaining inventory levels as of late. As covered by GM Authority in June 2023, the Detroit-based automaker announced it was cutting back on its production plans in response to a rail car shortage. As a result, some estimates demonstrate that there are approximately 70,000 new vehicles waiting to be shipped to dealers, with other reports indicate that there are thousands of units of the Chevy Silverado and GMC Sierra in limbo near the GM Fort Wayne plant in Indiana.
Even before this rail car fiasco happened, General Motors was trying to take matters into its own hands. Back in January 2023, GM Authority reported that GM was considering buying 400 heavy-duty trucks in an effort to alleviate its logistics issues. The idea was that employees would deliver finished vehicles directly to dealerships themselves.
With General Motors expecting to recover to full production capacity by the end of the 2023 calendar year, any rise in inventory levels is a good indicator that the Detroit-based automaker is well on the path to recovery.