Automotive News Alert:
May 2, 2014
GM is limiting dealer orders on many popular models of its pickups and freshly redesigned big SUVs because of short supplies of four-wheel-drive systems, V-8 engines and other components.
The ordering limits are frustrating some dealers who say demaind is high for the redesigned 2015 SUV's launched in January as the first overhaul of the big utilities in eight years. Dealers fear missing out on the early launch window that tends to bring out big spenders.
A lot of the features and models that people want and are willing to pay extra for, we can't get, said Rox Covert, dealer principal at two Chevrolet dealerships in Austin, Texas.
Covert said he has sold orders for 47 Chevy Tahoes and Suburbans and 31 GMC Yukons that have gone unfilled for several weeks. He said many of the customers have been waiting since February.
Dealer ordering constraints aren't uncommon, especially during new model launches. But many GM dealers say that the breadth of the shortages is unusual.
Covert went further, describing the shortages as the "worst constraints" he has seen since a two month strike in 1998 disrupted production at GM's Flint, MI truck plant.