The auto industry has been hammered by the coronavirus, but things could take a turn for the worse as America is running out of pickups.
With plants shut down, inventories of popular trucks are starting to run low. Things aren’t critical yet, but major problems could be just around the corner.
According to one dealer who talked to Automotive News, the “pipeline is very dry” and they only have a 30-day supply of Chevrolet Silverados. They aren’t alone as another dealer told the publication they could potentially run out of pickups by the end of June.
Also Read: GM, Ford And FCA Shut Down All North American Plants
GM and Ram pickups appear to be in short supply as Morningstar noted Chevrolet had 82 days worth of Silverado inventory in March. Likewise, Ram had a 114 day supply.
To further complicate matters, GM and FCA have been aggressive with discounts as both companies are offering 0% financing for 84 months. This has helped to spur sales, but it’s also depleting inventories of popular models.
GM is in a particularly bad spot as the company was still recovering from the UAW strike that shutdown production for over a month. As a result, inventories were already pretty lean before the pandemic.
Ford is in a slightly better position, but there are concerns this could change if shutdowns are extended. As of right now, the company appears to have enough trucks to make it until summer before dealers start running into supply issues.
While things aren’t critical yet, the publication noted J.D. Power estimated light-duty pickup inventory could fall to 400,000 units by the end of the month. That’s 300,000 units less than last year and, if shutdowns continue, inventory levels could fall to 260,000 units by the middle of the year.
The drop in supply is already impacting customers as certain configurations aren’t available in inventory. This leaves shoppers with little choice other than settling for something else or ordering a truck and having no clue when it will arrive.
Needless to say, trucks are cash cows for automakers and anything that hurts sales could have a big impact on their bottom line. However, it’s too early to predict if the truck shortage will turn into a crisis as there’s no telling when production will resume.
