GM considering cutting back on truck output as inventory piles up

2011 Chevrolet Silverado

GM is considering measures to reduce its truck inventory, said Mark Reuss, president for North America.  The company’s truck inventory rose to more than 275,000 units at the end of April, which represents 111 days of supply.

“We’re going to do something about it, but we haven’t made those calls yet,” Reuss said in a telephone interview. Buyers shifted away from trucks last month, “but no one month makes a trend, so we’ve got to see where this one holds,” Reuss said.

At the end of March, the company had about 264,000 trucks on dealer lots.  GM’s overall sales are on the rise, but surging gas prices have stunted the growth of truck sales.

As would be expected from the gas situation however, sales of the Chevrolet Cruze have set record-breaking sales figures since its introduction, with over 25,000 units delivered in April.

GM has also reduced its incentive spending in April by just over 8%, with an estimated $3,068 per vehicle.  Models such as the Chevrolet Silverado and GMC Sierra carry rebates as high as $4,505, but smaller vehicles such as the Cruze and Aveo receive no incentives.

– By: Stephen Calogera

Source: Automotive News