Quote:
Originally Posted by Z06 Rocket
So what's the benefit of shuttng down then? Except the obvious lack of sales of new cars leading to a slow down in cars being sent to dealerships.......
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Hey Rocket,
The benefit of the shut down is to lower the vehicle supply numbers. I think most manufacturers try to work with about a 60 - 75 day supply. The last I heard I think GM had about 130 day supply. So, the longer than normal summer shut down is to allow the dealers to clear some of that existing inventory. Otherwise, they would be building units that the dealers could not accommodate.
From what I have read all of the manufacturers, not just GM and Chrysler, are experiencing greater supply than demand right now. I think that is why we have seen some of the foreign manufactures also reporting some first quarter losses.
I guess we have hi-jacked Ernie's thread. Sorry!
Rich