This week’s top stories: Here’s how much the autoworkers strike hurt GM
We take a look back at decade’s top stories.
The company did not give precise dealer inventory numbers ahead the strike or at the end, but they conceded the the strike depleted supplies at dealerships.
“Our US dealerships finished the third quarter with a healthy level of inventory,” CEO Mary Barra told investors in late October soon after the strike ended. “As the strike continued … with no additional vehicles in the pipeline for many weeks, our dealer inventories will be temporarily leaner than we’d like. The team is doing everything in its power to restore our supply of vehicles back to normal levels.” But there were limits to how much overtime could be scheduled at the plants to rebuild supplies.
Much of the drop in shipments to dealers in the quarter came from lower shipments of the new full-size pickups, GM’s key product. But sales to customers held up well in the quarter, with the Chevrolet Silverado and GMC Sierra posting a 20% increase in sales in the quarter compared to a year ago.
“We didn’t really see a significant inventory problem for GM throughout the quarter,” said Michelle Krebs, senior analyst for Cox Automotive.
She said there were mostly shortages of the full-size SUVs, like the Chevy Suburban and Tahoe. GM is about to roll out a new version of that SUV, which made building up the inventory before the start of the strike more difficult. Those two models’ sales fell 13%.
“Overall GM sales [to consumers] were better than we had been expecting,” she said.
Correction: An earlier version of this story incorrectly stated GM’s sales to consumers.