GM Predicts No Change in Production

02/19/96

Reuters reported that GM will not alter their production plans for 1996's first quarter, despite the report of major overstocks on dealer lots at the end of January.

Industry analysts reacted to the news of a 97 day surplus of GM vehicles by prediction a cut in productiion and a boost in sales incentives. GM replied to those reactions by saying that inventories are typically highest at this time of year, when sales are at their lowest. GM plans a gradual decrease in inventories, but wants to be ready for the traditional spring selling season.

On February 7 GM released a production schedule which aims for the manufacture of 1.5 million vehicles by years end. That would amount to a 6.7% decrease from the number of vehicles it built last year.

Paul Dever -- The Auto Channel