As reported by the Detroit News, General Motors Co. is closely monitoring the consumer shift to more fuel-efficient cars, trying to determine whether it should curtail truck production, Chief Financial Officer Dan Ammann said Thursday (May 5).
“We expect, given the mix change, there could be some changes to truck production schedules going forward,” Ammann told reporters gathered at GM’s Detroit headquarters.
He declined to elaborate on what those alterations might entail.
GM’s North American President Mark Reuss told Bloomberg News at an event in Kentucky on Thursday that the company is going to do “something” about its large truck inventory, but “we haven’t made those calls yet.”
GM had about 111 days’ supply of trucks at the end of April — more than double what is considered healthy by the industry for an automaker.
Asked if GM may soon eliminate shifts at truck factories, Ammann said it’s too early to tell.
Truck sales got a boost late last year as many businesses replaced older models. Demand was so strong that GM said in January it would add a third shift and hundreds of jobs to its Flint, Mich., factory in the third quarter to increase production of heavy-duty trucks.
But truck sales have since declined with gas prices near or over $4 a gallon across much of the nation.
In April, GM’s U.S. car sales rose 49.8% over the same month last year; while trucks sales grew 11.5% year-over-year, according to AutoData Corp.