Dealers short on cars with low factory inventory

Automotive News shows us that automakers are still shy about making cars despite the economic c climate of recession and also the taxpayer auto bailout with it. That’s because low factory inventory is becoming the rule rather than the exception recently. The result of this is that dealers need more cars to sell, as they can’t meet increasing demand. An online survey found that more than 160 of 244 responding dealers – representing the spectrum of automotive brands – had too few autos to sell. Less sales were made because of this.

Dealers losing buyers over low inventory

Low inventory is the reason why buyers have left their dealerships upset. Not enough GMCs, Hondas, Hyundais, Chevrolets or other cars are available, which constitutes a wide portion of the automotive spectrum. One dealer told Automotive News that automakers “have driven supplies too low,” yet dealers like him are certain they could sell more if stock was accessible. Cars like the GMC Terrain tend to be among probably the most problematic vehicles to acquire for dealers, yet makers like General Motors, Ford and also the Chrysler continue to take a hard line on boosting profits while maintaining low inventory. Dealers are worried that that automakers may be cutting too much.

Factories are trying to help

Automakers have to help dealers although they’re trying to keep away from losing money with overproduction. Dealers are nervous too. They’d rather sell all the cars than get more cars than they can sell. Right now is a time that we have to move forward from the high incentive and low resale value cars. Automotive News reported this after talking with Tom Henderson. Some adjustments are necessary, of course. GM has been changing a part of a plant in Ingersoll, Ontario to create more bodies showing that Chevrolet Equinox and GMC Terrain need more cars to meet demand. Since there’s no room for the bodies on the assembly line under the current production schedule, however, GM is sending the new bodies to an additional plant located two hours east for paint and finish.

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