Comments on Lean Blog: Automotive Overproduction Comparison

The dealer inventory is not on GM's books, it is o...

2007-11-04T10:13:00.000-06:00

The dealer inventory is not on GM's books, it is owned by the dealers. So it's not directly GM's problem, until they have to start slashing prices to move metal, which then starts harming GM's reputation and pricing power.

Hi Mark,Telling stats alright, not sure if you hav...

2007-11-02T23:47:00.000-05:00

Hi Mark,

Telling stats alright, not sure if you have picked up this article on Chrysler from the latest "Economist", inventory woes are really telling on them and for the life of me it I don't envy the staff working there. I recall talking to an ex GM staffer now working for Molson Coors and she said the working in these outfits is like a being on life support machine, you never know when someone is going to switch it off. You have to admire those that can stay motivated in such a climate, or is it really that bad?

Regards,

MikeNZ

Quick and dirty math says that's around $8,000,000...

2007-11-02T08:42:00.000-05:00

Quick and dirty math says that's around $8,000,000,000 additional inventory between GM and Toyota (if the average COST of a GM model is $20,000 across all vehicles).

What could you do with $8 BILLION dollars for research and development? What could you do for your employees with $8 BILLION dollars to strengthen employee ties?

Maybe the biggest question is what will GM do with the almost 900,000 vehicles that no one wants to purchase?

terrific summary, Mark. That simple chart speaks ...

2007-10-31T18:38:00.000-05:00

terrific summary, Mark. That simple chart speaks volumes.

Think of the cash sitting out there in 880K unsold vehicles.