The General will idle its truck-making plants in Michigan and Indiana for two weeks next month to deal with a large stockpile that reaches over 100 days worth in some cases, and to prepare the factories for output of 2012 model year vehicles.
GM is rightly being quite careful about building products into the summer months and not getting caught with an excess amount of prior model year inventories. They’re going to be careful not to build too much of the older model year vehicles and have to discount them heavily in the face of having newer model year vehicles on the same lot.
GM’s truck inventory was 288,000 units at the end of May, up from 275,000 on April 30. The inventory included 258,000 units of large trucks, or 110 days supply, Don Johnson, according to GM’s vice president of U.S. sales.
Flint assembly in Michigan will shut down for the two weeks in July. Production at Fort Wayne assembly in Roanoke, Indiana, also will stop during those weeks. The two plants are responsible for making Chevrolet Silverado and GMC Sierra pickups.
In an official company statement, Mark Reuss, president of GM’s North American operations, said the large inventory was acceptable, and that no large discounts are to come as a consequence.
Source : autoevolution
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