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GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

NHTSA closes 4-year GM investigation, issues common sense advisory [w/video]

Since January 2011, the National Highway Traffic Safety Administration has been investigating a possible problem with corroding brake lines in General Motors' GMT800-platform models, like the Chevrolet Silverado and Suburban and GMC Sierra, in states with salt on their roads in the winter. However, as opposed to launching a full recall of millions of vehicles, the government is issuing a common-sense safety advisory to all drivers in snowy states to keep their vehicle's undercarriage clean. It even has a video explaining things. "Older-model vehicles, often driven in harsh conditions, are subject to corrosion over long periods of time, and we need owners to be vigilant about ensuring they, their passengers, and others on the roads are safe," said NHTSA Administrator Mark Rosekind in the announcement of the end of the investigation. The agency was clear in its report that "brake line corrosion seen in the GM vehicles was not unique," and the government "has not identified a defect that would initiate a recall order." Instead NHTSA is advising drivers, especially those of vehicles from before 2007, to wash their vehicle's undercarriage in the winter and spring to remove salt or other de-icing chemicals. It also recommends regular checks by a mechanic to make sure everything is in proper order. According to the investigation documents, for just the GMT800 platform models, NHTSA found 3,645 complaints of brake line corrosion, which included allegations of 107 crashes and 40 injuries. The issue was found to be more common in vehicles over 10 years old. GM has released a statement (embedded below) that the company "supports the consumer advisory from NHTSA urging regular maintenance and care of brake lines on older vehicles." NHTSA Closes Investigation into Brake-Line Failures NHTSA 13-15 Thursday, April 9, 2015 Agency issues safety advisory on preventing undercarriage corrosion WASHINGTON – The Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today issued a Safety Advisory and consumer video encouraging owners of model year 2007 and older trucks, SUVs and passenger cars to inspect brake lines and thoroughly wash the underside of their vehicles to remove corrosive salt after the long winter in order to prevent brake-line failures that increase the risk of a crash.

Chevy Spark EV could be coming to Midwest later this year

Ohio is not known as a hotbed of EV sales – if anything, the state is a bit anti-EV, thanks to a legislative fight against Tesla's direct sales model – but it might be on Chevrolet's short list to expand the market for the Spark EV in the near future. The latest official GM press release on the battery-powered Spark still says the car is "available exclusively in California and Oregon," but Hybrid Cars found four Ohio dealerships that list a Spark EV on their websites, with hints the the car will be coming to the Midwest state by the end of the summer. See, for example, here, here, here and here. But that's probably not going to happen, according to Randy Fox, GM communication's manager for passenger cars. Fox told AutoblogGreen that, "At this point in time, we don't have any official plans to expand the Spark EV beyond California and Oregon." The reason is that California and Oregon have the infrastructure to support EVs, Fox said, and GM wants to be able to support its EV customers. "We are continuing to look at other options," he said. "The selling point for electric cars today is not advertising, it's eyeballs, it's peer exposure" – John O'Dell John O'Dell, a senior editor at Edmunds.com, told AutoblogGreen that, "It makes sense for [GM] to expand sales and it makes sense to do it in a quiet manner, to get these vehicles on the road. The selling point for electric cars today is not advertising, it's eyeballs, it's peer exposure. If someone in my neighborhood has one and he likes it, then maybe I can trust him. So it's important to get these vehicles on the road." Chevy sold 182 Spark EVs last month, a significant increase over the 98 sold in April. That's still small potatoes compared to the 3,000+ Nissan Leaf EVs sold last month, but making the electric Spark available in Ohio, say, or GM's home state of Michigan could boost those numbers. AutoblogGreen called a few dealerships in Michigan to see what they had heard. One salesman said he didn't think GM had started production yet but the inventory manager for another dealership said the Spark EV is scheduled to arrive in the Midwest in "roughly the fourth quarter." What would GM's incentive be to offer the car in markets outside of California where it can gain ZEV credits with each sale?