GM Extends Plant Shutdowns Amid High Vehicle Inventories

FSMNews

FSMNews

General Motors Co has extended a shutdown at the MI factory that builds the new Chevrolet Bolt electric auto as part of a broader effort to get control of bulging inventories of unsold vehicles in the United States.

Reuters reports that GM's us inventory hit a 10-year high in June, meaning the manufacturer has a whole lot of unsold cars hanging around.

General Motors has extended a shutdown of the plant building the Chevy Bolt in a move to trim an oversupply of GM vehicles. The 10-year high on their inventories also prompted them to act on the potential glut they can face in their future.

Vehicle buyers did show more interest in the Chevy Bolt and Prius Prime, which saw 10,932 and 9,692 units sold, respectively, during the first six months of 2017. The company in April told investors it expected inventories would decline to a 90-day supply at the end of June, and fall to 70 days by the end of the year. Bolt inventory had gone from 104 days to 111 days during July.

As per GM's own distribution plan, the Bolt EV is officially in dealerships in California, Oregon, Massachusetts, Maryland, and Virginia since the beginning of the year.

An assembly plant in Oshawa, Ontario, will be idled for two extra weeks to reduce inventories of the Chevrolet Impala large sedan.

The auto company is really looking for long term goals and success, it has been gearing up to announce a couple of new models and units; their focus revolves around the going to the new, better, and safer cars.

During the first half of the year, 7,592 Bolts were sold.

A spokesman for the company said the shutdown at Orion was "due exclusively to softening sales of the Sonic" model, adding that its production plan for the Bolt for this year was unchanged.

On Monday, Paul Masse Chevrolet in East Providence, Rhode Island, advertised on its website that it had more than 200 Bolts in inventory at prices ranging from $35,688 to $41,488.

The 2017 Chevrolet Bolt was supposed to be the electric auto of the people-around $30,000, about 240 miles of range per charge and decent space in a little package.

The California carmaker had already taken over 400,000 down payments on the Model 3 with its $35,000 starting price.

It's also a hard lesson in #brands to look at the Bolts sales versus the pre-orders of the Tesla Model 3, which is Tesla's more pocket-friendly EV.

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