General Motors announced that it will temporarily halt production at its Fort Wayne plant in Indiana for the week starting November 7, in order to reduce its inventory of pickup trucks models.
This is not the first time that GM has stopped production at the plant where the Chevrolet Silverado and GMC Sierra are manufactured. Even though pickup sales in the US have increased from January until August by 9% to 1.1 million units, compared to the same period last year, GM seems to have badly misjudged demand for its models, resulting in an inventory of 122-days.
And this despite the fact that both Silverado and Sierra sales have so far increased this year, by 7% and 18% respectively compared to 2010.
GM executives seem to have overestimated demand, increasing the two pickups inventory far more than the 80-days standard for the industry.
So far, the Detroit automaker’s efforts have yielded a small inventory decrease, to 115 days.
Story source: Autonews [Sub. Req.]
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