Ford (F), GM (GM) and Chrysler are in a bit of a bind. Their inventories have piled up as output...

Ford (F), GM (GM) and Chrysler are in a bit of a bind. Their inventories have piled up as output at their Japanese rivals recovers from the earthquake last year. To regain lost market share, Toyota (TM), Honda (HMC) and co have been offering buyers deep incentives, an approach that has caused the Detroit Three big trouble in the past and which they're trying to avoid now.

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Comments (9)
  • Ralph K
    , contributor
    Comments (34) | Send Message
    Check on F inventory, they do not have an oversupply and in fact cannot produce the new Fusion fast enough. The same is not true for G.M. as they do have an oversupply . You should not be making blanket comments without proper research .
    5 Dec 2012, 06:00 AM Reply Like
  • TwistTie
    , contributor
    Comments (2429) | Send Message
    I drive by a suburban Ford dealer on my way home.


    Since I heard the sales report yesterday, I took an extra long glance at the car lot.


    There were LOTS of F series on the lot.


    I wondered if that was a good thing.


    I suspect that this dealer is used to hold inventory for the metro area.


    5 Dec 2012, 06:28 AM Reply Like
  • Tdot
    , contributor
    Comments (9375) | Send Message
    Ford may well be stockpiling supplies of the best selling vehicle in the US, in anticipation of even heavier selling during the holidays and going into the winter. This is the time of year when guys in the northern states go out and buy trucks and snowplow attachments, in anticipation of lots of extra "climate change" snow to be cleared around the neighborhood, for a few extra bucks.


    At the same time, Ford generally plans for large scale production shutdowns during the winter holidays, to give the overworked production employees a break, and others a chance to tidy up the place.


    So it may be that Ford is just trying to get a little ahead of the curve, and have the right products at the dealerships when the madding crowd arrives. F-series trucks generate a big chunk of Ford's global profits, and Ford means to protect that advantage. Ford has made great strides in managing inventory and optimizing production to maximize profitability, so they are most likely up to something...


    GM on the other hand seems to have about a 6-month supply of pickups, which sounds closer to a disaster brewing than preparing for a significant uptick in demand.
    5 Dec 2012, 08:01 AM Reply Like
  • Ryandan
    , contributor
    Comments (1594) | Send Message
    I didn't see the 6 month supply numbers anywhere - but I would agree that could be a serious problem for GM and Ford when the incentives are slapped on the window stickers...............
    5 Dec 2012, 09:26 AM Reply Like
  • Tdot
    , contributor
    Comments (9375) | Send Message
    Clarification - GM has a 139 day supply of 2012 Chevy and GMC pickup trucks. Meanwhile they are trying to get the 2013s launched and on sale. Which means about 4.6 months worth of the outgoing 2012 models if there are 7 selling days a week. But actually it is more like 5 or 6 selling days a week, depending on the community, so maybe 6 months worth, depending on how the business days are counted.

    5 Dec 2012, 12:17 PM Reply Like
  • Ryandan
    , contributor
    Comments (1594) | Send Message
    So we see fantastic sales numbers while they try to clean up this mess, but profit margins will be non-existent. Dear GM, you're as dumb as ever. Thanks for the clarification............
    5 Dec 2012, 03:33 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3711) | Send Message
    Toyota (TM), Honda (HMC)


    Wonder if Cn's Jp purchasing boycott have anything to do with this?
    5 Dec 2012, 06:52 AM Reply Like
  • elroy
    , contributor
    Comments (88) | Send Message
    Many auto manufacturers take the opportunity to load up the US market when other areas of the world falter or opportunities present themselves -- such as in 2008 when gas prices went to $4. I saw an article that BMW is sending more vehicles to the US because European sales have slowed.


    Inventories tend to build a bit during the winter months anyways so you have to look model by model. Sales rates -- even without incentives and competitive pressures - vary too.


    The inventory distribution systems works to distribute product where it is needed but it can often take several months to adjust.
    5 Dec 2012, 08:54 AM Reply Like
  • jackcumbee
    , contributor
    Comment (1) | Send Message
    In my area I'm noticing more new car tags than usual. I bought a new Fusion back in July and since then I've noticed that many people must like the car for some of the same reasons I bought mine. I've owned at least some Ford stock since $2.18. To say the least, the stock has been good to me.
    6 Dec 2012, 03:26 AM Reply Like
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