Quantcast

Automaker inventories, or why GM is still screwed

Toshi

butthole powerwashing evangelist
Oct 23, 2001
40,232
9,117


http://www.thetruthaboutcars.com/chevy-has-381-day-supply-of-vehicles/

And man oh man does it look bad. In a business where 60 days’ worth of inventory is considered ideal, Chevrolet has a 381-day supply of, well, everything including a 142-day supply of the new Camaro and a 381-day supply of Aveos. The Pontiac Wave (the Aveo twin) checks in with a 608-day supply. Chrysler? Those readers who have a vested interest in the automaker should look away now.

The TTAC Ten Worst chart topper, the Jeep Compass, boasts (if that’s the right word) a 225-day supply, with the Patriot clocking in with a 200-day supply. Pity the poor Dodge Sprinter with its 423-day supply. Over at Ford, the Lincoln MKS is easy enough to find with a 141-day supply clogging the lots.

Scanning the transplants, Toyondissan have all shut off the spigot in time, with inventories in the 60s to 80s. By matching supply to demand, Detroit’s competitors have kept their dealers’ costs down. Even so, when the mother of all fire sales begins, their prices and margins will fall.
how does this compare to other companies? data are slightly out of sync but should be roughly comparable:

http://www.autonews.com/article/20090511/ANA06/305119966/1200

General Motors and Chrysler LLC are the worst off with a supply of more than 110 days. Toyota Motor Sales U.S.A. cut 146,200 units from stock in 12 months and stands at 60 days, but that's up from 52 days a year ago. Ford Motor, American Honda and Nissan North America are closely grouped near 80 days despite strenuous efforts to control inventory.

Collectively, these six manufacturers slashed inventories by a quarter during the past 12 months. But sales plunged so much that only Ford and Nissan reduced their days' supply.

Chrysler cut its stock by 20 percent, but supply jumped 40 days, to 114, as its sales fell 48.1 percent in April.
 

jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
43,524
15,745
Portland, OR
The Aveo is total crap, too. Compared to the Yaris, it's garbage. We rented an Aveo for about 30 minutes. The road noise at 30mph on surface streets was so bad I turned around and took it back.

If US auto makers could figure out how to build a Yaris/Verssa rather than a modern Pinto, they might stand a chance.
 

stevew

resident influencer
Sep 21, 2001
41,356
10,280
the few times i've seen sprinters outfitted like campers...... i've never been quick enough with my camera.
 

Toshi

butthole powerwashing evangelist
Oct 23, 2001
40,232
9,117
the few times i've seen sprinters outfitted like campers...... i've never been quick enough with my camera.
they're all over the national parks! on my last road trip, which was, what, two years ago already (!!) i saw quite a few RV Sprinters. like Westy i'd totally live in one. it wouldn't be a large car/truck, but rather it'd be a small house! heh.
 

jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
43,524
15,745
Portland, OR
I saw an 08 diesel for $22k at the dealership this morning.

Are they made by Dodge and rebadged for Mercedes, or is it the other way around?
 

1453

Monkey
The Aveo is total crap, too. Compared to the Yaris, it's garbage. We rented an Aveo for about 30 minutes. The road noise at 30mph on surface streets was so bad I turned around and took it back.

If US auto makers could figure out how to build a Yaris/Verssa rather than a modern Pinto, they might stand a chance.
But no US maker made the Aveo, it was built by Daewoo and imported under GM name.
 

BurlyShirley

Rex Grossman Will Rise Again
Jul 4, 2002
19,180
17
TN
So what do all you auto-industry experts think of how Ford is doing?

I like the fact that they ended up turning down any federal bailout money, and that they have some hybrid things in the works. They seem to be undergoing some restructuring of their own accord to try and stay viable. Recently their Focus models have been very competitive (reliability-wise) with the Civics and Sentras of the world. And they've basically always had the best trucks...
 

Toshi

butthole powerwashing evangelist
Oct 23, 2001
40,232
9,117
Way to justify Mr. Alternative Personal transport electric bike guy....
i want a concorde, too! and a personal helicopter! doesn't mean i'm ever going to actually get one. :D
 

Toshi

butthole powerwashing evangelist
Oct 23, 2001
40,232
9,117
So what do all you auto-industry experts think of how Ford is doing?

I like the fact that they ended up turning down any federal bailout money, and that they have some hybrid things in the works. They seem to be undergoing some restructuring of their own accord to try and stay viable. Recently their Focus models have been very competitive (reliability-wise) with the Civics and Sentras of the world. And they've basically always had the best trucks...
i think ford is in a better place financially, for sure. i like a lot of their products, too: the focus is still crap imo but sync and a new dashboard have apparently won it some new buyers, the fusion looks nice +/- hybrid trickery. my problem, and their problem, is that they have a million and a half suv-type things. escape, edge, flex, explorer, i don't even know what half of them are called or what market segment they're supposed to occupy.
 

syadasti

i heart mac
Apr 15, 2002
12,690
290
VT
my problem, and their problem, is that they have a million and a half suv-type things. escape, edge, flex, explorer, i don't even know what half of them are called or what market segment they're supposed to occupy.
Just like Toyota - they too have a large portfolio of trucks, SUVs, and crossovers so they aren't any more eco than Ford in that respect. Note the listed mileage below is all best case (ie FWD or RWD only with the smallest engine available):

 
Last edited:

BurlyShirley

Rex Grossman Will Rise Again
Jul 4, 2002
19,180
17
TN
I imagine a slimming down of the line-up is probably in order for all of these companies, but I sometimes wonder if we aren't getting a little ahead of ourselves on this eco-friendly, anti-SUV thing.
Volkswagen is currently building a brand new plant in TN right now, with the primary aim of producing some SUV/Crossover thing there. This won't even be completed for the next couple years, so there must be some market research to suggest SUVs will still be in demand for the forseeable future, and this is a billion dollar facility they're building. Volkswagen arent a complete bunch of idiots to my knowledge, so you've got to imagine they have what seems like a reasonable plan.
Now, the trend in increasing mileage overall seems like a reality, and you might see fewer Expeditions and Armadas on the road over the next several years, but the midsize SUVs like the Explorers and 4 Runners and stuff are all here to stay. Their mileage isn't ideal, but they can all probably made to average at least 25mpg. These visions of everyone suddenly turning to little Honda Fit type econo-boxes for the sake of the planet just aren't realistic IMO. At least not in the next decade or two.

Now if gas jumps to a solid $5 a gallon and stays there, you will see some drastic measures taken Im sure, but who really knows what gas prices will do? Who knows how much of the stuff we have left? 20 years worth? 200 years worth? This stuff is all highly debatable, and pretty unrealistic sounding to your average driver, so as long as they can afford it, they'll just keep driving the kinds of cars they like.
 

BurlyShirley

Rex Grossman Will Rise Again
Jul 4, 2002
19,180
17
TN
considering the smaller cars they have in europe that the could have imported here ages ago.....they are fvcking retards.
Sure, from a practicality/mileage standpoint it seems stupid, but Im sure you realize they have researchers to determine which products would be most profitable here. If it were as simple as producing vehicles in facilities they've already built, with designs they already have, and then profiting handsomely...Im sure that's what they'd be doing.
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
i think ford is in a better place financially, for sure. i like a lot of their products, too: the focus is still crap imo but sync and a new dashboard have apparently won it some new buyers, the fusion looks nice +/- hybrid trickery. my problem, and their problem, is that they have a million and a half suv-type things. escape, edge, flex, explorer, i don't even know what half of them are called or what market segment they're supposed to occupy.
Ford seemed to have gotten the wakeup roundhouse kick to the head a couple years ago that GM and Chrysler completely avoided. Yes, they still have too many dealerships, but from a product standpoint they're going to be in pretty good shape. Simple product that sells well, and platform sharing to reduce costs. Sharing the C1 platform between the Mazda3 and Euro Focus is a good example of cost-cutting, and ensuring that future models are global (designed from the beginning to pass both Euro and US standards) will be a HUGE help. So far at least the Fiesta and new Focus will be designed that way, and there's probably more in the pipeline that we don't know about.
 

jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
43,524
15,745
Portland, OR
Now, the trend in increasing mileage overall seems like a reality, and you might see fewer Expeditions and Armadas on the road over the next several years, but the midsize SUVs like the Explorers and 4 Runners and stuff are all here to stay. Their mileage isn't ideal, but they can all probably made to average at least 25mpg. These visions of everyone suddenly turning to little Honda Fit type econo-boxes for the sake of the planet just aren't realistic IMO. At least not in the next decade or two.
When my Toyota truck died, I replaced it with an F350 diesel that now runs B99. I pay $2.45 a gallon and get about 18mpg. At the end of the year I get a $.50 per gallon tax break so it's now cheaper to operate and has 4x the room than the Toyota. Also the B99 is all produced in Eastern Oregon, so it supports local farmers as well as reduces my emissions.

Toyota will be building more Hybrid SUV's and converting the Tundra to diesel in the next round of major rework. So I agree with the idea you have of keeping the mid-sized 4Runners, they will just be built as hybrid. My boss just bought a Highlander Hybrid and said he can get 25mpg around town easy.
 

Westy

the teste
Nov 22, 2002
56,406
22,490
Sleazattle
When my Toyota truck died, I replaced it with an F350 diesel that now runs B99. I pay $2.45 a gallon and get about 18mpg. At the end of the year I get a $.50 per gallon tax break so it's now cheaper to operate and has 4x the room than the Toyota. Also the B99 is all produced in Eastern Oregon, so it supports local farmers as well as reduces my emissions.

Toyota will be building more Hybrid SUV's and converting the Tundra to diesel in the next round of major rework. So I agree with the idea you have of keeping the mid-sized 4Runners, they will just be built as hybrid. My boss just bought a Highlander Hybrid and said he can get 25mpg around town easy.
Supporting local farmers? I would hope the B99 is made with waste oil. Not much sense in going straight from the crop to the gas tank.
 

jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
43,524
15,745
Portland, OR
Supporting local farmers? I would hope the B99 is made with waste oil. Not much sense in going straight from the crop to the gas tank.
Not 100%. If I was making it myself, it would be B100. The issue is SeQuential has contracted with almost everyone for collection (they pay for waste oil) so getting waste veg it isn't as easy around here. But I have a pump right down the street and a cardlock account for bio and dino only.

SeQuential-Pacific Biodiesel LLC is a joint venture between SeQuential Biofuels (Portland and Eugene, Oregon), and Pacific Biodiesel (Maui, Hawaii). Launched in 2004, it is credited with being the first commercial biodiesel production facility in Oregon.

The capacity of the Salem facility is approximately 1 million gallons of BIODIESEL per year. The feedstock is primarily based on used cooking oil, secondarily regionally produced oil from seed crops like canola. Many companies in Oregon and the Pacific Northwest, such as Kettle Foods, currently have their used cooking oil collected for processing into BIODIESEL. This is accomplished via Metro Rooter Plumbing, a waste grease collection company with a vacuum truck division dedicated to BIODIESEL feedstock procurement.
<edit> Growing feedstock like canola is still better than invading another country.
 

ohio

The Fresno Kid
Nov 26, 2001
6,649
26
SF, CA
I imagine a slimming down of the line-up is probably in order for all of these companies, but I sometimes wonder if we aren't getting a little ahead of ourselves on this eco-friendly, anti-SUV thing.
Yes and no. As far as public and media attention, yes it's shifted way too far but production hasn't.You're right that there will always be a need for the wagon/SUV/crossover format. These cars won't disappear by any means, but they also won't change much from what they are today so there's no need for them to get much attention. Attention goes to the new stuff and the latest trend, but big companies are almost too slow to really go overboard following them except over a period of many R&D cycles.
 

syadasti

i heart mac
Apr 15, 2002
12,690
290
VT
Toyota launched their US truck/SUV offensive after that report and even their RAV4 had the size/drivetrain grow. In 2006 the Taco when from small to midsized and was cheapened, FJ was a new model for 2007 and Tundra was made to compete with full sized US market. Highlander, Sequoia and Landcruiser were upsized in engines and/or size for their redesign in 2008 too.