Supplies of highly profitable GM pickups at historically low levels
Supplies of highly profitable pickups from General Motors are at historically low levels months after the company restarted production following nationwide plant shutdowns this spring due to the coronavirus pandemic. Supplies of GMC Sierra pickups on dealer lots are at 20 days or less compared with a typical supply of 75 days to 90 days, according to Duncan Aldred, head of the GMC truck brand. He attributed the low supplies to continued demand for the pickups throughout the coronavirus pandemic despite the shutdowns. "We're continuing to sell faster than we build," he told reporters this week. "That's not a comment on the build schedule, that's a comment on how fast we're selling them." The plants that build the vehicles in the U.S. and Mexico were shut down for about two months this spring due to the coronavirus pandemic. The pandemic was a second blow to the company's production and inventory levels following a 40-day UAW strike that ended in October. While low supplies generally mean higher transaction prices and profits, they also can strain dealer operations and cause them to lose customers due to longer wait times or models being unavailable at purchase. Other automakers with higher inventory levels also can offer better deals to lure customers.
Aldred said that is not the case for the GMC Sierra, saying the brand has "its highest segment share in recent history" despite its "lowest stock in history." He also noted that the Sierra light-duty and larger heavy-duty models have the highest ...
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