As GM didn’t manage to reach its November sales target for trucks, the automaker considers production cuts.
GM executives did not offer any details on what models or plants will see production cuts, in a month which has already a lighter production due to the holiday downtime at plants. GM’s truck sales were cut short by competitors’ ‘unexpectedly high’ incentives for the 2012 pickups. Therefore Chrysler’s Ram pickup sales increased 23% and Ford’s F-series sales were up 17.9%, while GM’s truck sales dropped 11% and its full-size truck sales fell 8%.
“We’ll continue to use all levers to influence inventory…,” said Kurt McNeil, GM’s vice president of U.S. sales operations, during a call with analysts and the media. “That includes first and foremost adjusting production and marketing activity.”
GM said that during November it had the lowest incentives in the truck segment, with $500 less than the segment average, and the average transaction prices for large pickups increased with more than $2,700 from November 2011. Its disciplined incentives made the automaker reach the end of November with an inventory of 245,853 full-size pickups, more than 235,585 units at the end of October. With this high inventory analysts expect GM to offer bigger incentives to get rid of the vehicles.