New vehicle production has been negatively impacted by several problems in recent years, resulting in manufacturing slowdowns and pauses that caused dealership lots to remain empty. General Motors has decided to temporarily halt production at a major pickup truck plant in Indiana, but unlike previous instances, this time it is not due to supply chain issues. The reason for the pause is that GM has an excess of trucks.
According to a report by The Detroit News, General Motors company will be temporarily halting production at its Fort Wayne Assembly plant for two weeks, starting March 27. The reason for this decision, as per a letter obtained by the news outlet, is to ensure that inventory levels remain optimal. The Fort Wayne plant is responsible for manufacturing half-ton variations of the Chevrolet Silverado and GMC Sierra, which are among the most sought-after vehicles in North America.
A spokesperson from GM has confirmed the temporary production pause with The Detroit News and also mentioned that truck production had increased in the last month while demand had stayed consistent. This statement is in line with GM’s earlier announcement on January 31 regarding their 2022 revenue, where they had committed to maintaining inventory levels that match customer demand. The company aims to have a supply of 50 to 60 days by the end of this year.
Could this indicate that vehicle inventory levels are normalizing? According to a spokesperson from Cox Automotive who spoke to The Detroit News, as of January-end, Chevrolet Silverado 1500 inventory was over 100 days, although GM has not provided an official confirmation of this figure. Additionally, it is currently uncertain what factors are driving the stabilized demand. Inflation and concerns of an impending recession in the US market could potentially result in reduced sales, despite a favorable supply of vehicles.
Stay tuned for more news!