GM to idle factory, trim pickup supply
GM is still trying to bring down its unusually high supply of full-size pickups.
General Motors has stated that its Fort Wayne, Ind. plant will sit idle for a week as the automaker attempts to align its pickup supply with market demand.
The plant will be out of action for a week starting on November 7th as GM tries to bring its inventory closer to the industry average of an 80-day supply for pickup trucks.
"We make adjustments at our plants based on demand, whether it means adding overtime or in this case taking a down week," GM spokesman Chris Lee told Automotive News.
The announcement marks the third time GM has slowed pickup production or cut shifts in recent months. Dealer supply of Chevrolet Silverado and GMC Sierra pickups hit a high of 122 days in June before falling to 108 days by the end of August. The company hopes to cut inventory to a 90-day supply by the end of the year.
Sales of Chevrolet and GMC full size pickups have actually increased for the year through August, with the Silverado up seven percent to 252,738 units and the Sierra up 18 percent to 93,438 vehicles. The oversupply partly derives from preparations for a lengthy production halt when GM will retool factories for the next generation of pickups, but it seems the company also simply overestimated second-half demand.
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