GM profits threatened by glut of pickupsWed, 05 Dec 2012 18:44:00 EST
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.
By Zach Bowman
See also: J.D. Power: Mini, Lexus again offer most satisfying sales experience, Toyota tops Kelley Blue Book's Resale Value Awards, GM recalls select Chevy Cruze, Sonic and Buick Verano models over airbag issue.