GM stocks up on vehicles amid strike threat

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Thread: GM stocks up on vehicles amid strike threat

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    GM stocks up on vehicles amid strike threat

    https://www.detroitnews.com/story/bu...ke/2276885001/

    General Motors Co. has stocked up on its vehicle supply ahead of a Saturday night contract deadline with the United Auto Workers.

    With a strike looking more likely than it has in years, the Detroit automaker has more than 11 weeks' supply of its profit-heavy trucks and SUVs at dealerships should the labor union stage a walkout when the contract expires after 11:59 p.m. Saturday. And that supply count does not include vehicles GM may have produced but not shipped.

    GM was chosen by the UAW as the "target" company with which the union is negotiating first. Contracts with Fiat Chrysler Automobiles NV and Ford Motor Co. are expected to be extended Saturday night.

    GM has built up a stock of 77 days of inventory at its dealerships, according to Cox Automotive. Although that is down from recent months following strong end-of-summer sales, it remains more than two weeks longer than the industry average of 61 days. Fiat Chrysler and Ford are at 67 and 81 days respectively.

    Those overall numbers don't tell the full story: GM's profit-heavy truck and SUV inventory is at a more-robust 80 days at dealerships, while its inventory of slower-selling cars stands at 59 days.

    Also, GM has a number of storage and distribution locations throughout the country for vehicles before they are sent to dealers, spokesman David Barnas said. Cox Automotive said its days' supply does not include such in-transit vehicles. Some 150 Cadillac crossovers and Escalade SUVs lined a fence along Grand River Avenue in Novi on Thursday. Street view images from May on Google Maps shows the front half of the vacant lot near the Suburban Collection Showplace empty.

    "We have an appropriate amount to meet our sales and marketing objectives," said Barnas, who declined to provide the full accounting.

    An extended walkout would dent that supply.


    “If it’s a day strike or a week strike, it’s not a big deal; they can always come back and make up the production,” said Michelle Krebs, an analyst at Cox Automotive. “If it’s more lengthy than that, then yes, they would have a problem.”

    Art Schwartz, president of Labor and Economics Associates in Ann Arbor and the former general director of labor relations at GM, said, “Usually you try to build up as much inventory as you can get away with. That’s about all you can do.”

    Although it depends on the plant and product, every hour of lost production costs automakers approximately $1.3 million per hour at each plant, according to the Center for Automotive Research in Ann Arbor.

    “The ripple effect is much larger,” added Kristin Dziczek, the center’s vice president of industry, labor and economics. “It doesn’t include costs incurred by suppliers that have plants idled because of the lack of need for work.”

    To prepare for a strike, GM should collaborate with dealers to plan incentives and, in the event of a walkout, try to sell the inventory already on lots, especially since automakers usually look to taper their stock of older models at this time of year, said Rebecca Lindland, founder of rebeccadrives.org, an auto industry and car review website.

    “At least initially, buyers won’t feel the pain,” she said. “Dealers tend to work with each other. ‘If you need a Chevrolet Silverado in white, I need your black one or silver one.’ They’ll help each other out, negotiate with each other. If the strike goes on and inventory starts to tighten, that’s when we feel the pain.”

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    Re: GM stocks up on vehicles amid strike threat

    One way for GM to get "Days Supply" in line.

    80 "Days" in stock is high already,

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    Re: GM stocks up on vehicles amid strike threat

    This should get interesting...
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    Re: GM stocks up on vehicles amid strike threat

    Sick of union nonsense

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    Re: GM stocks up on vehicles amid strike threat

    GM made 50B last year and they want to put US workers on the street and cut benefits. This is gonna be a messy one.

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    Re: GM stocks up on vehicles amid strike threat

    Quote Originally Posted by joey View Post
    GM made 50B last year and they want to put US workers on the street and cut benefits. This is gonna be a messy one.
    It's a good microcosm of some larger issues. Wealth inequality historically gets quite messy when it becomes much too vast.
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    Re: GM stocks up on vehicles amid strike threat

    Quote Originally Posted by joey View Post
    GM made 50B last year and they want to put US workers on the street and cut benefits. This is gonna be a messy one.
    GM did not make 50B last year, they made 14B gross profit. Net was around 9B. Their margins are not great at around 6%, but auto is a slim margin biz. The reason they make a fair amount of money is the scale involved. they sold 145B. Ask google or apple what their margins are. I agree that C-suite pay (for 99% ofl companies including GM) is out of control, but UAW did itself no favors in the current corruption probe. Unclean hands are hard to feel sorry for.

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    Re: GM stocks up on vehicles amid strike threat

    Quote Originally Posted by Vagon11 View Post
    GM did not make 50B last year, they made 14B gross profit. Net was around 9B. Their margins are not great at around 6%, but auto is a slim margin biz. The reason they make a fair amount of money is the scale involved. they sold 145B. Ask google or apple what their margins are. I agree that C-suite pay (for 99% ofl companies including GM) is out of control, but UAW did itself no favors in the current corruption probe. Unclean hands are hard to feel sorry for.
    It's impossible for me to feel sorry for the UAW when the government literally cheated the bankruptcy laws to screw over the Bondholders (who should have owned the company after bankruptcy) and hand part of the company to the UAW (and to themselves).
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    Re: GM stocks up on vehicles amid strike threat

    Quote Originally Posted by 'Vette Dude View Post
    It's impossible for me to feel sorry for the UAW when the government literally cheated the bankruptcy laws to screw over the Bondholders (who should have owned the company after bankruptcy) and hand part of the company to the UAW (and to themselves).
    Few people understand the Sham that was the GM "bankruptcy" In a true bankruptcy, the new entity would not still be beholden to the the former entity's labor contracts. The federal Gov't stepped in to save the UAW. Otherwise, we would have a new GM operating without the UAW and the bondholders wouldn't have been screwed.

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    Re: GM stocks up on vehicles amid strike threat

    Quote Originally Posted by jzchev28 View Post
    Sick of union nonsense
    Quote Originally Posted by Mingo View Post
    Few people understand the Sham that was the GM "bankruptcy" In a true bankruptcy, the new entity would not still be beholden to the the former entity's labor contracts. The federal Gov't stepped in to save the UAW. Otherwise, we would have a new GM operating without the UAW and the bondholders wouldn't have been screwed.
    Between the union and the Feds the whole thing sucks.

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    Re: GM stocks up on vehicles amid strike threat

    77 Days isn't a lot of inventory; need to look at it by model, for stuff that is made in the US.................
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    Re: GM stocks up on vehicles amid strike threat

    Love the comment that I read today from them about how the "UAW helped rebuild GM from the near collapse." Yeah, they rebuilt GM. Just like the hammers and wrenches in my tool box built my house. Like the UAW, they're tools, but I can replace my hammers and wrenches with new, better, and less expensive ones.
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    Re: GM stocks up on vehicles amid strike threat

    As bad as GM can be sometimes, the UAW is consistently worse. I hope UAW members realize that their "leadership" is stealing from them.

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    Re: GM stocks up on vehicles amid strike threat

    According to Fox Business 49,000 UAW workers are going on strike at midnight.


    If they can save Hamtramck and Lordstown that would be worth it.
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    -- Bob Lutz, former vice chairman and head of global product development at GM

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    Re: GM stocks up on vehicles amid strike threat

    Quote Originally Posted by jzchev28 View Post
    Sick of union nonsense
    Do you ever get tired of a companies nonsense like telling its employees to work outside of osha/epa/labor laws?
    Believe it or not but it still happens today, even in union shops.

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