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GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
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.

GMC Sierra spied with ZR2-style off-road modifications

A few months ago, the 2022 Chevy Silverado ZR2 was revealed with a bunch of off-road goodies to help it achieve a little more parity with trucks like the Ford F-150 Raptor and Ram 1500 TRX. But GM has another full-size truck, the GMC Sierra, and it would seem silly to us if the company didn't share those parts. Based on these spy photos, it seems GM agrees. Though thoroughly camouflaged, we can tell this truck is a GMC Sierra thanks to the sheetmetal on the doors and the distinct shape of the wheel arches. Under the wrappings, we can see that this Sierra features a very different front bumper to the current king of Sierra off-road models, the AT4X. The bottom edge is much higher for better clearance, particularly on the sides in front of the wheels. This is the same type of change applied to the Silverado ZR2's front end. It does appear to be missing the ZR2's skid plate, though we suspect that's a temporarily missing component on this prototype. One other off-road upgrade this Sierra features is a pair of rock rails to protect the rocker panels on the cab. What we can't see are the shocks installed on this truck. If this is a GMC version of the ZR2, it should have the spool-valve shocks from Multimatic. They're some of our favorite suspension components on any vehicle. Other components it should have are locking front and rear differentials, 33-inch tires and a standard 6.2-liter V8. Since the Silverado ZR2 is already revealed and ready for production, we would expect to see the GMC version soon. A good bet would be for a reveal in time for the 2023 model year. As for a name, it's hard to say, since we've already had AT4 and AT4X. It could be named something completely separate from the AT4 line. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

GM to idle car production at five factories as Americans continue CUV love affair

In case you needed another reminder that Americans have fallen out of love with sedans, General Motors today announced plans to idle five factories in January in a bid to cut its inventory to 70 days. Detroit-Hamtramck Assembly ( Buick LaCrosse, Cadillac CT6, Chevrolet Volt and Impala) and Fairfax Assembly in Kansas ( Chevy Malibu) will stop production for three weeks. Lansing Grand River ( Cadillac ATS and CTS, and Chevy Camaro) is going down for two weeks, while Lordstown, OH ( Chevy Cruze) and Bowling Green, KY ( Chevy Corvette) will go idle for a week each, Automotive News reports. GM's shutdown reflects a broader problem with the company's supply – at 847,000 vehicles, the company's supply increased unsteadily from a low of 629,000 units in January of 2016. That's more than a 25 percent increase in the past year. Citing information from Autodata, The Detroit News reports that at the end of November, GM had a 168-day supply of LaCrosses, 177 days' worth of Camaro, 170 days of Corvette, 121 days for Cruze, 119 days for ATS, 132 days for CTS, and 110 days of CT6. Meanwhile, inventory of the company's more popular vehicles is actually below the professionally accepted 60- to 70-day supply, The News reports. The Trax, Colorado pickup, and GM's full-size SUVs are sitting below 50 days and experiencing year-over-year sales increases. GM needs a rethink of its inventory levels, which is something that's apparently coming. "We're going to be responsible in managing our inventory levels," GM spokesman Jim Cain told The News. Another unnamed spokesman told Automotive News the company's day-to-day supplies would "fluctuate before moderating at year-end." But at least one analyst thinks this won't be the last time Detroit needs to stop production to level things out. "Incentives are elevated, residuals are declining, and rates are rising," Brian Johnson, an analyst with Barclays, told The News. "And while GM in particular may benefit in the months ahead from new product launches, it's important to recognize that GM's inventory is elevated at the moment, and it wouldn't surprise us if they need to announce another production cut – which could pressure the stock." Related Video: News Source: The Detroit News, Automotive News - sub. req.Image Credit: Paul Sancya / AP Plants/Manufacturing Buick Cadillac Chevrolet GM GMC Crossover SUV Sedan bowling green cadillac xt6 fairfax