Chevy has a one year supply of unsold HHRs
03-02-2009, 08:30 AM
#1
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Chevy has a one year supply of unsold HHRs
From Automotive News, in part:
Here's the scary thing about General Motors' fourth-quarter operating loss of $5.9 billion: There's little reason to expect much improvement in the first three months of 2009. Despite drastic cuts in production, employment, marketing and capital expenditures, GM still is hemorrhaging cash. How bad is it? In a conference call last week, CFO Ray Young said GM's cash burn this year would be less than last year, which it put at $19.2 billion — but admitted the cash burn in 2009 would be "front-loaded." Translation: The short-term bleeding will continue. It will be hard in this quarter for GM to reduce its cash-burn much below the $5.2 billion consumed in the last three months of 2008. And that won't be popular in Washington, where bureaucrats analyzing GM's bailout request seek assurance that they aren't throwing good money after bad. One of GM's biggest headaches is a stubbornly high inventory. Despite drastic cuts in production, GM had a 161-day vehicle supply on Feb. 1. A 60-day supply is considered ideal. In unit terms, GM had 792,600 vehicles in stock, down 69,800 from Jan. 1. That's a reasonable figure by historical standards. But sales have collapsed, so unsold cars and trucks still are piled up on dealership lots. GM's January sales totaled 122,728 units, down 48.9 percent from January 2008. GM sales analyst Mike DiGiovanni expects GM's February sales to be "about the same" as January, and he sees only modest improvements in the months ahead. At current selling rates, Chevrolet has more than a year's worth of unsold HHRs and Aveos.
(Automotive News, March 2)
You need a subscription to read the entire article.
Here's the scary thing about General Motors' fourth-quarter operating loss of $5.9 billion: There's little reason to expect much improvement in the first three months of 2009. Despite drastic cuts in production, employment, marketing and capital expenditures, GM still is hemorrhaging cash. How bad is it? In a conference call last week, CFO Ray Young said GM's cash burn this year would be less than last year, which it put at $19.2 billion — but admitted the cash burn in 2009 would be "front-loaded." Translation: The short-term bleeding will continue. It will be hard in this quarter for GM to reduce its cash-burn much below the $5.2 billion consumed in the last three months of 2008. And that won't be popular in Washington, where bureaucrats analyzing GM's bailout request seek assurance that they aren't throwing good money after bad. One of GM's biggest headaches is a stubbornly high inventory. Despite drastic cuts in production, GM had a 161-day vehicle supply on Feb. 1. A 60-day supply is considered ideal. In unit terms, GM had 792,600 vehicles in stock, down 69,800 from Jan. 1. That's a reasonable figure by historical standards. But sales have collapsed, so unsold cars and trucks still are piled up on dealership lots. GM's January sales totaled 122,728 units, down 48.9 percent from January 2008. GM sales analyst Mike DiGiovanni expects GM's February sales to be "about the same" as January, and he sees only modest improvements in the months ahead. At current selling rates, Chevrolet has more than a year's worth of unsold HHRs and Aveos.
(Automotive News, March 2)
You need a subscription to read the entire article.
03-02-2009, 08:55 AM
#2
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This is why I said in another thread not to expect a 2010 in the fall. I think many companies with large supplies of some models will carry 09 into 2010. GM has already done this on the G8 and Astra.
Toyota is renting property to store their unsold cars. Some of the Asian companies are also renting ships to store the unsold cars on since they are just sitting and not shipping cars in them.
If the economy is down long enough it may even eat up companies like Toyota with large cash reserves.
There is little in the stimulas bill that will change this.
Toyota is renting property to store their unsold cars. Some of the Asian companies are also renting ships to store the unsold cars on since they are just sitting and not shipping cars in them.
If the economy is down long enough it may even eat up companies like Toyota with large cash reserves.
There is little in the stimulas bill that will change this.
03-02-2009, 01:51 PM
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Re-serialing an '09 as a '10 won't work if emissions and/or safety laws change for the new model year.GM will just scrap the units left at the factory like they did with the Camaros and Firebirds in 1972 after a long strike.I remember seeing a picture of crushed F bodies at the Norwood ,Ohio plant.
03-02-2009, 02:53 PM
#8
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GM will not scap anything or reclass. they will finish what they have now and shut down production till inventories drop.
This will mean they will be selling 09's into the time we would expect the 10's to be out.
If thing stay slow most companies will continue the 09's and not start the 2010 till late if at all.
MFG's as a whole are sitting on a lot of cars right now and it will change thing a lot for the next yeat.
This will mean they will be selling 09's into the time we would expect the 10's to be out.
If thing stay slow most companies will continue the 09's and not start the 2010 till late if at all.
MFG's as a whole are sitting on a lot of cars right now and it will change thing a lot for the next yeat.
03-02-2009, 03:46 PM
#10
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The Chevy dealers I have seen have anywhere from 8-16 HHRs.
