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GM Truck Glut Impact (12/20/12)

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  1. General Motors0:57
  2. Insurance Institute for Highway Safety1:38
  3. fatal injuries2:12
  4. auto maker2:31, 2:59
  5. Lund2:01, 2:47
  6. light trucks0:31
  7. weekly commentary4:03
  8. GMC Sierra1:13

Thu, 20 Dec 2012|

Excess supply may lead to 'aggressive' spiffs; four-door manages crash forces in new test; supplier lands autonomous license.


Automatically Generated Transcript (may not be 100% accurate)

Inventory surge as US sales continue to climb many auto makers have plenty of product on hand. It in one case two months. That's next. Like to welcome you in on this Thursday. I'm Tom -- back. Other makers started December with the largest inventory in almost four years some three point one million unsold cars and light trucks. The reason. Keeping up with an expanding market. Industrywide there is -- 69 days supply of vehicles. Above the normal I deal rate of sixty. But lower than average for this time of year a few examples. Chrysler stands at nine. Hyundai Kia at 42. But at the opposite and -- -- General Motors with a 160. Day supply. Up from 98 a month earlier. GM's bloated inventory is due in large part to an excess of large pickups. Is the company prepares to build the next gen Chevy Silverado. And GMC Sierra. So what's next. Kevin Tynan an analyst at Bloomberg industries who -- US branded inventory at ninety days. His buyers Macy aggressive discounts before the end of the year. He notes those spirits can potentially harm manufacturer margins. More now on the newest crash test results from the Insurance Institute for Highway Safety. You've heard of the institute's top safety pick. Now it has a new title for carmakers to strive for top safety pick plus. It goes to cars that pass a stringent new test the small overlap collision. Institute president Adrian Lund says the test measures what would happen. It just the front corner of a vehicle hits another car or an object like a tree or a poll. About a quarter of serious and fatal injuries occur in small overlap crisis. He says today's cars have a front structured deliberately designed to crush in a crash. But in a small overlap crash. This structure can be bypassed. And in that case the damage can often extend well into the occupant compartment. Unless the auto maker has designed to prevent that now as we told you this morning on first shift. The Toyota Camry and Prius to be. Slapped with a surprising -- rating after failing the new test. The drivers had just brushes off the airbag Lund says Toyota engineers have some catching up to do. In a statement Toyoda bowed to respond to that challenge in said it was evaluating the new test protocols. The auto maker also pointing out that the 2012 Camry and Prius -- Our designated top safety picks by I IE eight chest and the camera has a five star government safety rating. A more upbeat reaction from rival Honda whose four door cord was one of two midsize sedans rated good in the new test. The other was the Suzuki disaster. Honda saying it's 2013 record as a reinforced front frame structure. That better manages crash forces. Continental is the first automotive supplier to receive Nevada is autonomous vehicle testing license. The test vehicle will display a special red license plate. Conte says the highly automated vehicle provides a safer more comfortable ride for those inside. Finally the ancient Mayan calendar says the world is going to end Friday I sure as heck hope it doesn't. Because we have -- left and weekly commentary for. We will see you that.

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    Eight polling that Tug of war what heavy duty YouTube has poured threatening to life. You're watching auto news now. Good to see you on this Monday. I'm Tom back for Ford and Chrysler the stakes couldn't be higher. According to true cart dot com heavy duty pickups represent 23%. Of all pick up sales in the US. In one of the main reasons to buy a big truck. Towing capability. a battle is raging between Ford and Chrysler's ram Brad. Over who can claim best in class Ford is threatening legal action if keeps claiming its pickups have besting class We're talking so called fifth wheel or goose neck trailer is connected in the pick up that. So here's the issue. Ford says 2015. F 454. By four crew cab can 31200. House. That's about 12100 pounds more than the highest capacity 3500. Which is rated at 30000. Pounds. But rim says the trucks are not even in the same class. It's is the F 450 is a class four pick up in fact the only class four pick up on the market. says the 3500. Actually competes against the F 350. In GM's 3500. Heavy duties. Reporter Larry tells us Ford does something no other automaker does when setting its maximum payload for the F series. It removes items like the radio. The spare tire the Jack. In the center console in order to produced the maximum number for its payload that's a questionable practice because a component truck over. Into another class. Larry says under the system used by other auto makers the F 450 would be considered class war. For more story in today's print and digital editions of Automotive News. Ford is raising prices on the new one in fifteen aluminum body F 150 pick up. Like 340 dollars to 3385. Bucks. The king ranch sees the biggest price increase over the 2014 model. Ford however has upped the standard equipment in all models of the truck for example to information screens are standard. Our Richard true it is also reporting the auto maker is trimming the number of F 150 models from eleven to five. With the new truck arrives this fall popular name plates such as the raptor in limited will be gone. Dealers started ordering the pick ups today. More business may be on the way to service based in GM dealerships. That's because the auto maker is offering buyers of its 2015 models for monthly vehicle diagnostic reports through OnStar. The move also allows customers to sign up to receive maintenance notifications from their stores. Both services will be offered at no charge for five years under a plan named OnStar basic. Previously. They were available only to paying OnStar subscribers. GM says that customers who are emailed me notifications from their dealerships. Come in for two additional service visits a year on average. Compared with customers who don't receive that. Cash for clunkers a phrase that was all the rage five years ago this month. Officially known as the car allowance rebate system clunkers was a lifeline at a desperate time in the US auto industry. US sales in June of 2009 dropped 28%. wasn't so lawful because every other month that your have been worse. But thanks to clunkers which provided consumers as much as 4500 bucks to trade in an old gas guzzler for a more fuel efficient new vehicle. July 2009 sales were off just 12%. In August sales that year were up 1%. In the end nearly 700000. Vehicles were traded in through the two point 85 billion dollar federal program. Have a great day everyone. We'll see you back here tomorrow.