Mark Reuss, General Motors’ president for North America, said that the company may cut pickup production as inventories expanded last month. He said that while GM will definitely do something about it, no calls have been made yet.
It was noticed last month that buyers shifted away from trucks. However, Reuss is determined to wait, saying that no one knows yet what the future would be.
As of the end of April, GM's truck inventory had gone up to over 275,000, or about 111 days of supply, In a conference call, Don Johnson, GM's vice president of U.S. sales, said that a month ago, it had about 264,000 trucks on dealer lots.
GM's U.S. sales decreased by about 26% to 232,538 vehicles in April from 183,997 a year ago. These results had aided the industrywide U.S. auto sales rate in April to 13.2 million on a seasonally adjusted annualized basis -- the third consecutive month that its sales were higher than 13 million.
GM said that the Chevrolet Cruze compact car will set a sales record since it was presented in 2010 with 25,160 deliveries. The average U.S. price of regular gasoline climbed 37% in the past year to $3.98 a gallon, AAA says.
The price peaked at $4.11 in July 2008. In April, GM reduced spending on incentives for U.S. customers by 8.1% to an estimated $3,068 for each vehicle, Autodata Corp. said.
GM is offering rebates of up to $4,505 for Chevrolet Silverado and GMC Sierra pickups, while it offers no rebates on small cars such as the Chevrolet Cruze and Aveo. This information was provided by AIS Rebates, a company based in Ann Arbor, Michigan, that provides of incentive data to dealers.