Friday, March 4, 2011

Ford (NYSE:F), GM (NYSE:GM) Inventories at Historic Levels

General Motors (NYSE:GM) and Ford (NYSE:F) inventories remain at historic levels, a positive sign that is likely to minimize the extent of industry incentives, according to a new report.

The report by Standard & Poor's said inventory levels were 61% at the end of February, up 19% from a year ago but up just up 1% from Jan. 3.

At GM (GM), inventory was about 617,000 vehicles, a 60-day supply. "We continue to manage our inventory," said Don Johnson, vice president of U.S. sales operations, on the company's February sales call.

At Ford (F), the level was about 410,000 vehicles, a 63-day supply. Ford inventories were little changed from 410,000 from 416,000 a year earlier or from 409,000 at the end of January 2011.

"We're matching production with consumer demand," said Ford analyst George Pipas, on the Ford sales call. "This is enabling us to improve revenue."

According to S&P, "Inventories generally remain near historical levels, which we believe should allow automakers to prevent incentives from returning to post, elevate levels. Discipline in this area is an important factor in the domestic automakers' recovery.




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1 comment:

Anonymous said...

Can anyone communicate anymore?????? Are these historically high levels? Historically low levels? "inventory levels were 61%%", of what? Is a 60 day suppy good? Bad?

What a lame article. Was this out-sourced to India. You're using English words, just not communicating in English.