GM latest inventory numbers in and its impressive

[JB]

GM Inventory Numbers 05-01-2019

May 1, 2019: Inventory/Day Supply Numbers (Based On April Sales)

Cascada 1,010 53
Envision 13,023 123
LaCrosse 2,005 71
Regal 6,025 160
Enclave 14,066 80
Encore 40,177 131
Total Buick 76,306 113

ATS 489 95
CT6 2,015 81
CTS 4,022 104
Escalade 11,040 95
XT4 11,003 115
XT5 19,958 100
XTS 2,001 35
Total Cadillac 50,528 95

Bolt 7,050 191
Camaro 12,002 72
Corvette 8,055 97
Cruze 19,010 71
Impala 3,998 21
Malibu 26,022 73
Sonic 3,987 60
Spark 4,952 50
Volt 1,978 167
Blazer 16,998 215
Colorado 31,052 65
Equinox 67,012 57
Express 20,025 69
Silverado 204,958 119
Suburban 13,025 72
Tahoe 25,911 73
Trax 35,111 151
Traverse 34,015 81
Total Chevrolet 535,161 86

Acadia 28,023 78
Canyon 10,079 70
Savana 6,992 56
Sierra 70,997 99
Terrain 22,033 64
Yukon 21,015 110
Total GMC 159,139 84


General Motors Total 821,134 89

Source: http://www.einventorynow.com/13.html

[JB]

Changing market conditions are affecting the optimal 60 day supply desired but even so.....with the drop in overall demand as the SAAR dropped for the industry as a whole...GM s moves to control inventory levels are a bright spot.

GM has stated it will be able to remain profitable even if the SAAR drops from 17 million last year to 12.5 million should a disaster strike in the US automarket

at its worst in recent years the SAAR dropped almist a decade ago to qp million SAAR when buyers could not get auto loans to buy vehicles wanting to be sold or leased in the USA...(2009/2010)

credit still seems to be available so we shouldnt see a drop that low. It has been stated for the first time ever repossessions of vehicles for non payment is rising rapidly.

even in the financial crisis when home owners went delinquent on their home mortgages they still surprisingly paid their car loans..(easy to repossess and people needed their cars to get to work so they paid their car loans ignoring their mortgages.

for some reason people are beginning to default on tjeir car loans more so than ever..

this is a dangerous sign for the industry...

just shooting the breeze as GM is being proactive so as not to be in harms way should the economy relive 2009/10 crisis levels.

some may say Ms Barra and her team are tough with the knife on plant closures ...i suggest Ms Barra and team are moving effectively to maintain profitability for all possible sales environment...

As a side note...during the GM repayment of auto loans ie bailout by the US government...a planned profitability was deosgned in at the then 10 million Saar...

now GM is using a more realistic worst case scenerio of 12.5 million SAAR and I applaud their worst case scenerio shift to 12.5 million.

selling off money losing operations in europe and around the world makes sense...

a little concerned about the entire industry rushing to ride sharing concepts..personally I think its a fools errand...

more logical would be considering www.barro.com moves as shown in california...

short term ev lease deals on off lease vehicles from the factory with full coverage on warranty is the smarter play with the main profit being data collection and selling of that data...

thats where GM should focus future profitability ....in a barro like business venture to piggyback with cruze automation..(cruze automation i believe was valued at 17 billion last year )

piggy back short term lease barro like GM would be a huge profit center...

this concept would begin to sure up residuals on new car sales and offer second hand buyers a confidence inspired avenue instead of subsidized leasing by manufacturers which will begin heavily as the SAAR continues to drop.

like I mentioned just shooting the breeze..

what do you believe is going on amd what do you think will occur in thenext year or so in the US market?

[George]

The rapid rise in repos speaks volumes about how 'upside down' the average American is. It is also just one indicator of how fragile the entire auto market is, as we re-enter dynamics that are very similar to '07 - '08. As long as we offer 10% down mortgages and give deals on cars to anyone with a pulse, we're on very thin ice economically.

Will Corvette stay somewhat above these issues...maybe at first, but time will tell.

[John]

Wow a few months ago GM had a 237 days supply of Corvettes, then it declined to 137 days, now with spring purchasing and compounded by increased sales to to GM’s Corvette owner loyalty’s $3,000 incentive, now down to just 97 days . Perhaps with the schedule Plant shut down between the end of the C7 and the beginning of the C8 being about 6-10 weeks (we do not yet know anything official from GM), they might have things right on track??? Could be, a “well done GM,” something really hard to do at the end of a generation.

[meyerweb]

What surprised me about those inventory numbers is that even SUVs and pickup seem to be suffering.