By on December 19, 2016

Camaro Cash On Hood

(Update: This story has been updated to reflect new information.)

Not since the dark days of the recession has General Motors had so many vehicles clogging its inventory.

Bursting at the seams with unsold cars (but not trucks or SUVs), the automaker will temporarily turn out the lights at five assembly plants and kill off three shifts in order to bring things back into balance. For thousands of workers, that means the kind of extended Christmas holiday you don’t want.

According to The Detroit News, GM’s inventory stood at 874,000 cars, trucks and crossovers at the end of November. That’s the largest glut since 2008 — a dismal time when buying a new car meant you were either exceptionally lucky, or foolish.

The automaker’s inventory has ballooned in 2016, growing by 182,000 vehicles since this time last year. In fact, the ranks of the unsold grew by 40,000 units between Halloween and November 30. Naturally, incentive spending went through the roof in an attempt to clear out the glut, rising an average of 36 percent per vehicle in November, though it wasn’t enough to turn the tide.

Now, GM is forced to scale back production of numerous models.

According to the United Auto Workers, the automaker’s Detroit-Hamtramck assembly plant will shut down for three weeks in January, stemming the flow of the Chevrolet Volt and Impala, Cadillac CT6 and Buick LaCrosse. A second shift will be cut in March, leading to nearly 1,300 layoffs.

Both the Lansing Grand River Assembly Plant and Lordstown Assembly Plant will see a third shift cut next month, leaving a further 2,000 workers out of a job. The Lansing plant will also be idled for two weeks, Reuters reports, while Lordstown will see the lights go out for one week. Lansing builds the Cadillac ATS and CTS, both plagued with slow sales, and the heavily incentivized Chevrolet Camaro. While GM had an unhealthy 87-day supply of all cars in November, its Camaro stock could supply dealers for 177 days. Clearly, something had to give.

Autodata claims a 121-day supply of Lordstown-built Chevrolet Cruze models, while ATS and CTS inventories stand at 119 and 132 days. Overall, GM boasts a 105-day supply of its passenger cars, with 70 days being the industry ideal.

The automaker’s Bowling Green plant in Kentucky, which builds the Chevrolet Corvette, will shut down for a week next month, while its Fairfax plant in Kansas City will see a three-week shutdown. Fairfax builds the Chevrolet Malibu and Buick LaCrosse. In total, the shutdowns will idle about 10,000 workers.

While a certain automaker — *cough* Fiat Chrysler Automobiles *cough* — dealt with slow sales by killing off unpopular models, GM isn’t willing to go that route. As such, the public’s turn towards light trucks means pain in the heartland.

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76 Comments on “GM to Throttle Back Production, Idle Plants as Car Glut Grows...”

  • avatar
    Big Al from Oz

    It’s amazing when instituitionalised culture doen’t change.

    Did GM learn that just selling the most is not the answer?

    GM would of known they must wind back production of slower moving product.

    Hey, if GM fncks up again it knows it’s to large to fail and a bail out is a phone call away. The American taxpayer will fix it.

    • 0 avatar
      Big Al From 'Murica

      Well they shut down Australian production.

    • 0 avatar

      GM is NOT too large to fail. Not by a long shot.

      The latest numbers I have in front of me: As of 2013, GM had 36,000 hourly workers in the USA. In China alone they had 55,000.

      I suppose the numbers could be obtained for the rest of the world but I don’t have the time or the motivation to research it.

      As of 2013, GM was manufacturing cars in 37 countries. How many employees do they have in the other 35 countries? Who knows? Add up the total employees all the foreign manufacturing plants and compare that to the 36,000 American workers.

      So who would the American taxpayer bail out? This “too big to fail” argument doesn’t match reality. It was presented last time around as saving American jobs but it looks more like we saved jobs in 36 other countries. The taxpayer lost 11.2 BILLION dollars in the last bailout.

      The bailout ship already sailed. Let the other 36 countries bail them out if they want.

      If GM went bankrupt, someone would by the assets at auction and be building Chevrolets again. Maybe they could manage the damn company.

  • avatar

    The Cadillac CT6!!!

    No way!!!!!

    I and a few others dragged many of the commentariat along, kicking & screaming, into the full-blown realization that the ATS, CTS (and Camaro) were YUUUGE sales flops, overpriced, underbaked, of poor quality/assembly & unrefined, and rightfully scorned & unloved…

    …but the CT6, with Johan, Melody & Uwe’s personal fingerprints all over it as a bona fide a) status symbol, b) engineering marvel, c) fashion brand over d’object, d) “serious” Mercedes/BMW/Audi/Lexus contender, e) wundermobile ???

    Didn’t Cadillac DOWNPLAY sales expectations for the CT6 to around 800 units per month? They can’t even sell between 9,000 and 10,000 of the “highly advanced,” “first-ever” (what does that mean?) CT6 per year?

    Will Cadillac be able to sell 7000 CT6s per year, or will they ultimately succumb to the XTS rental car dumpage model just to try and pay for the Hamtramck tooling/line/machine/stamping costs?

    Cadillac is an absolute failure, and would be losing even more blood if not for TWO VEHICLES, being the CT5 (which Cadillac had better pray sales of which stay healthy) and ESCALADE.

    Way to earn that paycheck and 12 billion dollar earmark, JOHAN.

    And now the Impala, LaCrosse and even remodeled Cruze can’t move off dealer lots?

    At this rate, even with production cuts, GM will have close to a million vehicles in purgatory surface storage lots strewn about the nation by 2018.





    • 0 avatar

      p.s. –

      GM Trucks, and to storage extent, CUVs are selling due to MASSIVE INCENTIVES. There are truly unbelievable incenetives on Chevy & GMC trucks right now. The megavolume dealers are discounting everything to try and make their year end quotas.

      • 0 avatar

        Yadda yadda. It’s not so much that the Cadillac cars are failures – all luxury makes have declining car sales. It’s that Cadillac has been too slow to roll out decent crossovers. That’s the real sin – that in the Land of the SUV, Cadillac has 2 models, while BMW and Mercedes each have 5.

        • 0 avatar

          “According to The Detroit News, GM’s inventory stood at 874,000 cars, trucks and crossovers at the end of November. That’s the largest glut since 2008 — a dismal time when buying a new car meant you were either exceptionally lucky, or foolish.”


    • 0 avatar

      GM has already sold more than 7,000 CT6s this year. Specifically 7,876 through November.

      • 0 avatar

        A massive % of CT6 sales took place because of GM employees wanted to get one early, including network affiliate non-GM employees, such as dealership types.

        That tepid rush is over, obviously, or they’d keep the line running at 100% (or more), which they are not. IOW, look for huge falls in CT6 sales going forward.

    • 0 avatar
      Big Al From 'Murica

      But you have to admire them for Daring Greatly Deadweight.

    • 0 avatar

      Johan is using GM as springboard to Starbucks. I don’t drink coffee but I know.

  • avatar

    Just like Ben Hamper was talking about 30ish years ago in his book “Rivethead”. Nothing new here. I wonder if the workers are still going to get partial pay.

    • 0 avatar

      “Partial pay” …? As I recall , rough math , depending on seniority , and your Unemployment Benefit status , about 71 percent . In Canada your subject to 30 percent unemployment insurance claw back, if you finish up over $60 K total annual income.
      Ben Hamper had it right, “nothing new here” . I personally dealt with many “down weeks”. 79 to 82 , 13 consecutive Xmas , down weeks , before and after Xmas break.
      Life as an Autoworker , means , never living , pay cheque to pay cheque.

      • 0 avatar

        I feel badly for the line workers and other hourly workers in the production chain that will be affected by this, particularly around the Holidays.

        It’s not their fault GM is woefully short bright individuals in the executives offices and at HQ.

        It never ceases to amaze me how much better other automakers can do with less – less everything – budget, personnel, general resources, etc., while developing better products.

        I genuinely feel for the GM line workers, especially if they don’t have seniority.

  • avatar

    Sounds like the Camaro supply is just about reaching into the next model year.

  • avatar
    SCE to AUX

    Lansing is going to cut a third shift, and take two weeks off in January.

    Camaro has 6 months inventory.

    Either this is just the beginning of the work stoppages, or GM is delusional by rearranging the deck chairs on the Camaro.

    1. GM needs to stop Camaro production now, and resume it at a lower rate in May 2017,
    2. GM needs to stop Camaro production now, redesign the car, and release a 7th-generation Camaro in late 2018.

    • 0 avatar

      3. GM needs to convert Camaro lines to Trax.

      Trax can be the Equinox for the childfree.

      • 0 avatar

        Or the HR-V for the intellectually challenged.

      • 0 avatar
        Thomas Kreutzer

        This is actually a good idea. Today’s Camaro is impractical and few young adults aspire to own one. It’s never going to be a mass-market car again. As a halo car, selling to baby boomers who want recapture some of their youth, it will have a small part of the market – especially as the Corvette moves ever upward in price and capability – but its big selling glory days are gone.

        I feel like many in what was traditionally the Camaro’s target demographic shifted over to small SUV/CUVs years ago anyhow. Back in the 90’s many of my peers put S10 Blazers in their driveways. As young, working-class adults, we were right in the zone for those cars but few of us ended up biting. Unless you wanted the absolute cheapest base-model, The fourth generation Camaros/Firebirds cost way too much and no matter which one you got they were cramped on the inside. People stayed away in droves.

        • 0 avatar
          Big Al From 'Murica

          Ford is making it work with the Mustang it seems. Yes, the market has changed but GM has failed to adapt here and blew it with this car. Congrats, you win all the bench races with the Camaro. Too bad it isn’t selling because people don’t want to live with it every day.

          • 0 avatar
            Big Al From 'Murica

            It is similar to the 4th gen versus Mustang. Yes, the Mustang sucked by every spec in comparison…until you had to drive it every day. Now the traditional I wanna relive the 60’s crowd buys a Challenger, People who have to drive their pony car daily get the Mustang, People who want a 2 door like this but have cash get a BMW, and people who just want a toy car for weekends buy a Miata, a car still better in a daily role than the Camaro. That leaves folks that drive 1/4 mile at a time and those folks buy old cars and crack open the summit racing catalog.

          • 0 avatar
            Big Al from Oz

            The Mustang is also taking a bit of a hit. I do think Ford has managed the Mustang better. It’s also aesthetically pleasing and more conservative.

            The Mustang was also designed with an export market in mind.

          • 0 avatar
            Thomas Kreutzer

            I think Big Al is spot on here. I can’t say I was ever seriously thinking about buying any of these cars, but when I went around and shopped each of them I reached the same conclusion. I’d end up with a Challenger because I value size and image over performance ability. If size wasn’t an issue, I’d choose the Mustang.

            I enjoyed the SS Camaro I rented some years ago, but I couldn’t live with it every day. It was too small inside and reeked way too cheap. The Mustangs just seem like nicer vehicles to me.

            That said, if I was buying today I’d probably be looking at an Impala over the Chrysler/Dodge and Ford options. Ford doesn’t make a full size car that would bring me into the showroom and the 300/Charger pair strike me as cartoonish. I want something stately and understated.

        • 0 avatar

          TK hits it.

          The Camaro and Mustang are Battleships at the beginning of WW2.

          I think each has a huge enthusiast following. I’ve seen trains of new gen SS and whatever the top top shelf is on sunny Sundays going toward the State Park with the lovely twisty roads.

          I don’t see any normally though in the Green Leafy Burbs around NYC (Bergen-Westchester-Nassau-Fairfield) whatsoever. If you wanna be cool there are the obvious germans or japanese. If you get the toy you’ve sacrificed your soul for it will be a 911-GTR-or if you are a high flyer even here McLaren or something-ending – i.

          Went to a car show in Bergen County recently….a row of GT-3 in all colors….Ferrari shows up. Lambo shows up. Mc Laren show up…six of them. Audi R8. BMW M cars like Altimas.

          I was amazed. Floored, even. How do you win in this crowd ? Where am I , Dubai ?

          On cue, a Porsche GT, the first one I’ve ever seen in the Wild, rolls up and parks. Done. Also, rolling metal art.

          There were Mustangs and Camaros, but they were all older ones, some nice classics, a few much loved 80-90’s versions, but nothing new.

    • 0 avatar

      I like your option 2) best. GM needs to realize that it got the concept of the 6th-gen Camaro wrong, and restyle the thing significantly. It needs to look less like the 5th-gen and get a dose of practicality (better visibility, a bit more back seat). No changes to the platform or mechanicals are needed as no one has any beef with the way it drives.

  • avatar

    Soooo what you’re saying is now is the time to buy a Cadillac sedan?

    • 0 avatar

      If one felt compelled, for whatever odd reason(s), to buy any Cadillac, the long arch of recorded depreciation history suggests one would be most wise to buy used.

      • 0 avatar

        GUY1: GM product is going to be a good buy pretty soon like in 2008!
        GUY2: GM product was never a good buy.
        GUY1: Alright, an OK buy.
        GUY2: I still disagree.
        GUY1: Why?
        GUY2: Before, GM product and drivetrains were at the very end of long lifecycles for the most part. Now they are not, now you can’t even get a standard V6 in Cadillac anything or a Chevrolet Impala, let alone all of the other cheap techno-garbage that’s in them to break.
        GUY1: Ah.
        GUY2: GM will end up shrinking again, and if it does continue it will be because of truck sales yet again. Long term GM will probably fail because the cancer in its culture is endemic. No corporate bail out this time.
        GUY1: You’re such a ray of f***king sunshine.
        GUY2: I know.

      • 0 avatar

        Well I wouldn’t buy one at any rate but, being they should be available on the cheap new, it may make sense to buy new vs. used.

        Then again the $45K sticker Cadillac is an $18K used car in 2-3 years….

        • 0 avatar

          This would only make sense if the product you were buying was relatively solid or offered a bulletproof drive-train. I think you get neither these days from Fail Greatly. Resale tells a story.

      • 0 avatar
        Pete Skimmel

        Yep, the unfortunate purchase by my late mother of a 2015 ATS in September of 2015 for roughly $48K resulted in a sale in November 2016 to Carmax for $21K. Didn’t get any bites trying to sell to the retail market. The car now languishes at the Carmax lot at $28K, with just under 12K miles on the odometer. Someone will get a good buy eventually, if they are so inclined to purchase the turd.

      • 0 avatar

        Exactly. You have to evaluate Cadillac as an off lease car with 30k miles. The price drops are staggering and the car becomes a screaming bargain. I’d not remotely have paid 50k for my CTS-I’d not pay 40k for an ATS…but for 20k, you can get a nicely spec’d out ATS or last gen CTS. The new prices ? You’re tripping.

        sorry about mom, that’s a tough one

        • 0 avatar

          A nicely spec’d ATS, depending on what one thinks is nice, is a 15K car in terms of materials and build quality brand new (exclude margin from GM and the dealer). The RWD MY13s are trading about that with 50K so the market seems to agree.

          • 0 avatar

            I went over to the Cadillac site, and the ATS I’d theoretically want is $54.8K. Which is heinously deep into WTF territory.

            That’s not with anything crazy either. Just a red RWD V6 sedan with all-weather floormats and the upgraded brakes, epanded engine cooling, and performance exhaust.

            So, more than a comparable XE 35t, IS350 F-sport, or Q50 Red Sport and about equal to a G80 V8.

    • 0 avatar
      Big Al From 'Murica

      Yes, a mid 90’s D Body with an LT1

  • avatar

    Fleet, incoming!

    • 0 avatar

      How much are 2012-2013 ATS 2.0T RWD going for at auction?

      I want one. I drove two recently and they fit my little body well, and drove beautifully. I even didn’t mind CUE. How much will it run me? Do you have a good sample size for the manual?

      Thanks in advance – chaparral

      • 0 avatar

        *Points at the tip jar*

        Although they mix in 2.5 and 2.0T, the range is 10,6-15,5 with odos of 24-71K for an RWD MY13, there was no ATS in MY12. In the results, anything without an “A” toward the end is a manual (A = automatic) and there are only three I can see. Still too rich for my blood but do as thou wilt with thy cash… even 10K for one of these in I4 nearing 75K feels like a massive headache coming on.

        MY13 “Luxury” RWD

        12/07/16 Manheim Dallas Regular $15,000 17,822 Avg Black 4GT A Yes
        11/22/16 Manheim Texas Hobby Regular $20,000 19,495 Above Black 4CY A No
        12/12/16 Manheim Orlando Lease $16,400 28,197 Above Blue 4G A Yes
        12/01/16 Manheim Chicago Lease $16,200 29,438 Above Black 4G A Yes
        12/13/16 Manheim Pennsylvania Regular $14,750 31,389 Avg Silver 4GT A Yes
        12/13/16 Manheim Statesville Regular $15,400 37,603 Avg Black 4G A Yes
        12/06/16 Manheim Georgia Lease $16,000 37,631 Above White 4GT A Yes
        11/23/16 Manheim Nashville Lease $12,800 50,411 Avg Black 4GT 6 Yes
        12/15/16 Manheim Southern California Lease $11,500 51,560 Avg Black 4GT A Yes
        12/01/16 Manheim Riverside Regular $14,250 53,009 Avg White 4G A Yes
        11/29/16 Manheim Arena Illinois Regular $10,600 59,779 Below Blue 4G A Yes
        12/13/16 Manheim Riverside Regular $12,500 62,577 Avg Gold 4G A Yes
        12/01/16 Manheim Cincinnati Regular $11,600 67,792 Avg Beige 4G A Yes
        12/08/16 Manheim Tampa Regular $13,300 89,159 Avg Silver 4G No
        12/06/16 Manheim Orlando Regular $8,600 95,633 Below Black 4G A Yes
        12/13/16 Manheim Riverside Regular $13,100 102,278 Avg Black 4GT A No

        MY13 “Premium” RWD

        10/24/16 Manheim Texas Hobby Lease $19,000 24,328 Above White 4GT A Yes
        09/28/16 Manheim Nashville Lease $18,700 31,745 Above Red 4GT 6 Yes
        10/18/16 Manheim Statesville Lease $18,000 37,711 Avg Red 4GT A Yes
        09/20/16 Manheim Orlando Lease $19,000 42,125 Above Black 4GT A Yes
        08/18/16 Manheim Dallas-Fort Worth Regular $18,600 44,290 Above Gray 4GT A Yes
        08/17/16 Manheim Denver Lease $18,300 61,283 Above Black 4GT A Yes

        MY13 “Performance” RWD

        12/08/16 Manheim Louisville Regular $19,000 16,344 Avg Black 4GT A Yes
        11/01/16 Manheim Statesville Regular $19,200 26,549 Avg Gray 4GT A Yes
        10/26/16 Manheim Nashville Lease $18,000 27,864 Avg Red 4GT A Yes
        09/20/16 Manheim Houston Regular $20,200 31,875 Above White 4GT Yes
        11/03/16 Manheim Mississippi Regular $18,500 32,776 Avg Red 4GT A Yes
        12/01/16 Manheim Phoenix Regular $15,400 47,327 Below Gray 4GT A Yes

  • avatar

    “While a certain automaker — *cough* Fiat Chrysler Automobiles *cough* — dealt with slow sales by killing off unpopular models, GM isn’t willing to go that route”

    GM historically runs unpopular models to full life cycle for reasons I never understood. Chrysler probably cannot afford too.

    • 0 avatar
      Adam Tonge

      It takes GM a significantly smaller portion of resources to bring a vehicle to market and they will typically produce a greater volume. This means it makes more sense to continue to build products that don’t meet sales expectations for a longer period of time. Also, if the 200 and the Dart were selling at higher prices, FCA might have kept them around longer. See Lincoln MkT and Ford Flex.

    • 0 avatar

      You are thinking about this backwards. With Chrysler the Dart had fulfilled it’s purpose of getting Sergio the rest of the company. However just because a car isn’t selling as well as was expected does not mean that it isn’t making a profit. By discontinuing it you are locking in a loss. Continuing to produce it as long as you can sell it at an average price sufficiently greater than the variable cost to produce you can recover more of your loss, even if you never make a profit.

  • avatar

    I’m kind of glad now that my mother keeps her card 10 years. She might as well drive the wheels off of her Buick Verano, goodness knows it likely is worth half of what she bought it for back in 2012. On a side note, water pump failed on our 2013 Cruze with just a shade over 50k on it. Not exactly confidence-inspiring.

  • avatar

    GM needs to make available the infamous Trifecta tune from their Buick division. If they applied the Trifecta tune across all their product lines the Japanese, Korean, and German brands would be out of business within a week. Just ask Norm.

  • avatar

    If this were the old GM, they would keep on producing cars and engage in channel stuffing. Now, they lay off workers and shut down facilities temporarily in order to keep costs down and the B&B here do nothing but criticize.

    This is exactly how a company should respond to this situation. But in TTAC land, this is somehow the wrong response.

    Can I interest you in some break pads, possibly?

    • 0 avatar

      GM still has a lot of bad product. The salt in the open wound of that bad product is unrealistic and non-competitive pricing.

      The LaCrosse, Impala & Malibu are turds. Seriously, the gauges and interior materials, along with the steering and suspension attributes of these vehicles are laughable.

      Cadillac interior quality, build quality, and reliability sucks, and its “luxury/premium” bona fides are seriously lacking.

      The Impala I was initially stuck with in Las Vegas would have been an embarrassment for Kia of 10 years ago. It was so bad that I – even I, with (righteous) contempt for GM – was appalled.

  • avatar

    lady walks into a Chevy store and looks at a Malibu, the salesperson tells her it has a Tag Bonus even before the test drive. then she learns about the instant value certificate and compatible internet voucher, after discovering she gets another thousand since hubby has a Lincoln lease she is really nailing down the lease payment. OMG, $750 bump on her GM Card to go along with the stair step coupon for inputting daily rental vehicles. by the time it all is figured, if she prepays the lease without buying back miles, the car is actually FREE. the salesperson can’t close it so the manager comes in and offers a FREE 1st payment, but the car was already FREE. she leaves, preferring to pay for a Toyota.

  • avatar

    one of my ideas… “Work or Play, It’s Your Chevrolet” picture a Camaro and Silverado. customers take ownership, appeals to commercial and casual buyers. mindful of “See the USA in Your Chevrolet”. that worked okay as I recall. (oops, should have said remember?)

  • avatar

    I could clear the decks of 500,000 units in 60 days. the factory would have to add shifts to keep up with your Friendly Buickman. meanwhile we could cut the budget and get rid of a fair number of worthless marketing executives. shall we “Drain the Swamp”? Steve Hill is useless, most of what he does is wrong and harmful, send Batey on sabbatical if he’s under contract, and for the love of God rid us of Buzz Lightshare from Infinity & Beyond. if any of these named failures were by chance in the NFL, their tenure would not last a season.

  • avatar

    how about this? “Thank You America” we announce it on the Super Bowl. a FREE oil change to every licensed driver in the country. the dealers will pay the cost and we bring in hundreds of thousands of people into our dealerships. costs us ZERO! they have to take a test drive to qualify. car on hoist and them behind the wheel of a new GM vehicle. this is a perfect scenario and how you sell cars, rather than a Red Toe Tag Sale. there’s lots more where this comes from. remember, I am the world’s greatest car salesman. shame these ratfinks in the Ivory Towers are so self centered and preoccupied on protecting their positions that they are costing us share, sales, jobs and return on investment, lastly, keep in mind that Gerosa didn’t retire really, he just relocated to Grand Blanc

    • 0 avatar

      The people who will do anything for a free oil change mostly consist of people who are not in the new car market.

      • 0 avatar

        so it costs the dealer $25 to have the client’s car on a hoist and them behind the wheel. that is the most effective marketing spend in existence.

        • 0 avatar

          I had a free oil change recently and the dealer noticed a slight oil leak (It’s a Jeep thing) and wanted $100 to diagnose it. Another time with a Honda, and also a free oil change, the service advisor wanted to upsell me for a $75 safety check. I laughed as the car only had 12k miles on it. Free oil changes… :)

  • avatar

    America Went the Extra Mile for GM, Now GM Goes the Extra Mile for America! anyone in a lease takes a test drive and gets a Spin to Win Extra Miles on their current lease. guaranteed to win at least 50 miles, up to 5000. now we have all their info, car, miles, remaining term. they’re in our stores and driving our products. this is how you sell cars Mr Batey, you worthless interfering, problematic, nuisance.

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