Wednesday, August 11, 2010

Dealers Begging For More Inventory;



Chrysler, GM, and Ford have scaled down inventories all throughout the nation, and it has affected many dealers adversely. Ford models can be purchased at a discount with the latest Ford Incentives. A Ford Dealership in Los Angeles asked for 100 Ford Fusion sedans in July, but the dealership only received 7 models. The dealer said that "I am begging for inventory across the board." Other dealers offer Volkswagen Specials for popular vehicle models like the Golf which have also been selling well.

Honda Louisville has had plentiful stocks of Honda vehicles which have also been selling well in the United States and recently made top ranking in a survey of the most desirable vehicles. Ford dealers are needing more supply of vehicles now. Ford, GM, and Chrysler have stopped building more vehicles than their customers want, and now for some vehicles like the Ford Fusion there is actually a waitlist to obtain it in some areas.

With dealers not being able to provide vehicles on customer demand, there is no question that they may be losing hundreds of thousands of dollars in sales per year potentially. The automakers reduced production is shown to increase profit, and this method has worked for all of the Big Three. However, dealers are hurt by the reduction in model numbers.

Dealers all throughout the country are hoping that American automakers start to produce more quantities of in-demand models, but that may not happen for a while as the Big Three attempt to continue to scale down production of unprofitable models and reduce overhead costs. GM said that it would increase production of the Equinox model and it is attempting to meet consumer demand without building too many vehicles which it did in the past. Building too many vehicles is shown to reduce profitability since new models will reduce in value over the years in which they are not sold.

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