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GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

GM recalling over 243,000 crossovers over possible seat belt defect

2010 Buick Enclave - Click above for high-res image gallery
The summer of 2010's recall hit parade continues unabated today, with General Motors having just announced that it is asking 243,403 owners of its 2009-2010 Lambda crossovers to bring their three-row haulers in for inspection. The culprit? Second-row seat belts in select Buick Enclave, Chevrolet Traverse, GMC Acadia, and Saturn Outlook CUVs have "failed to perform properly in a crash."
According to GM, a second-row seat-side trim piece is to blame, as it can impede the upward rotation of the buckle after the seat is folded flat. As a result, if the buckle makes contact with the seat frame, cosmetic damage can occur, potentially requiring additional force to operate the buckle properly. So far, no great shakes, but in the process of applying that additional force, the occupant may push the buckle cover down to the strap, potentially revealing and depressing the red release button. As a result of this, the belt may not latch, or in certain cases, it may actually appear to be latched when, in fact, it isn't.

GM can't keep up with most popular pickup orders

With the market for pickup trucks at its best since before the recession, General Motors can't afford any hiccups with the launch of its new 2014 Chevrolet Silverado and GMC Sierra twins, but it sounds like the popularity of V8-powered trucks is causing some supply-chain issues. Bloomberg reports that GM is experiencing a shortage of 5.3-liter V8 engines because an unnamed parts supplier has been unable to keep up with demand. This is leading GM to restrict the number of V8 Silverado and Sierra trucks that Chevrolet and GMC dealers are allowed to order.
Although it's unclear how long it will take to resolve the parts shortage, GM doesn't have much time to sort it out, as a new Ford F-150 looms on the horizon. At launch, GM's fullsize trucks were offered only with a base 4.3-liter V6 and the 5.3-liter V8, but a burlier 6.2-liter V8 will be available soon. Interestingly, at least at the moment, GM truck buyers don't seem as willing to downsize to V6 power as buyers of the F-150, which gets some 42-percent of its sales from trucks equipped with its EcoBoost V6 engine (not including the normally aspirated base V6).
Working out the kinks in the Silverado and Sierra's supply chain couldn't be more important to the health of the company. Full-size pickups are a huge profit driver - in 2012, the trucks were said to make up about two-third of GM's total profits.