General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan, August 25, 2009.
Credit: Reuters/Jeff KowalskyBy Bernie Woodall and Ben KlaymanDETROIT. Thursday, July 7, 2011 10 pm EDT
DETROIT (Reuters) - Big trucks are clogging of many lots of U.S. dealership, causing headaches for General Motors Co (GM.)(N) and other automakers and concerns awareness of the wars of prices and weaker profits later in the year.
GM earned much of the attention for its inventory of Chevrolet Silverado and GMC Sierra trucks life-size amounted to 122 days at the end of June. Which is about 50% higher than the 80 usually preferred days and above average still heavy industry of 99 days, according to Ward Auto.
Chrysler Group LLC and Toyota Motor Corp. (7203.T) are also to the supply of 93 days, while Ford Motor Co (f.n.) amounted to 79, said Ward.
"Clearly most manufacturers overestimated the kind of request we get for large full trucks in the first half," said analyst Jesse Toprak with the research site in line to buy the car TrueCar.
"We of the levels of stocks higher for large full trucks." Yes. It is an important issue? It is not at the level of the crisis, but the highest levels of healthy, "he said Thursday."
What makes analysts and representatives of the industry more nervous, it is if the US economy will depress the usual surge in demand in the second period. If buyers do not show, substantial incentives result - especially from GM - and drag down profits.
"This is what we would like to know," Richard Bame, Director of the national marketing of Toyota trucks, said fears of incentives higher later in the year.
"We thought that Ford was showing good enough deference", he added. "But we have not seen as General Motors and Chrysler.".
Buyer incentives for pickup trucks full size are $5,350 by the sale of the Sierra, $4,880 for the Silverado, $4,450 for Chrysler Dodge Ram, $3,750 for Ford F-Series and $2,654 for Toyota Tundra, said TrueCar.
GM raises more concern with the high number of trucks on the dealer lots.
"If the request is not back in the second half, this means that fire sale come from December,"Toprak said the risk of GM."" On the flip side, if the application recovery, the company will be seated enough with many trucks to offer, he added.
Buckingham Joseph Amaturo research analyst believes already that GM will boost its transactions, increase incentive spending in September by about $700 per vehicle. That would correspond to levels seen in January and February, when the No. 1 to the United States constructor has been criticized for being too generous.
Incentives higher by GM would force rivals to follow, injury benefits everyone, said analysts.
GM officials have tried to ensure that Wall Street that its inventories are not out of control and fall between 100 and 110 days end of the year.
Don Johnson, head of the GM U.S. sales, said Friday that a stoppage of production for two weeks in July in the company truck plants and a pick-up in the second half sales will help lower the level of stock. He also said that GM will never not aggressive with incentives.
Johnson said that GM sells a greater share of its pickup trucks Ford retail customers, requiring a wider range of trucks on the spot to meet the diverse needs of buyers in a segment where prices range from the low-$ 20,000 to the high $40, 000 s s.
Sizes different cab and bed lengths and types of engine in the application of pickup trucks higher inventory to ensure that a potential customer does not walk away, industry leaders said.
Responsible for Chrysler, which is managed by Fiat Italian (AIF.)(MI), and Toyota said they were satisfied with their inventory levels. "We are not in a bad place", Toyota's Bame said Thursday.
However, analysts are concerned because the costs associated with building big pickups are higher that the cars, and it is more expensive for distributors to maintain these inventories on their lots. Toprak worry especially that GM will have to provide financial incentives to dealers if trucks sit too long.
Efficient cars fuel receive much attention to the high prices of gasoline, but it is still of large trucks that generate large benefits. Toprak motor builders considers net of 5 000 $ to $6,000 per truck.
Analysts fear a great success for finance, GM. AMATURO, said Thursday Buckingham Research expects production of trucks in the third quarter of GM to be lower in the second quarter, 65 000 "which indicates a loss of 520 million dollars in" assuming that $8,000 per vehicle profit margin.
Ultimately, analysts fear that they have seen this story before. "The concern is that it looks more like the old GM in the once again," auto analyst IHS said Tracy Handler.
(Editing by Carol bishopric)
