Automotive Overproduction Comparison
How GM Handles a Hit: Build Fewer – WSJ.com
Welcome to new readers from the MoneyCentral MSN blog. To explore more about “Lean,” visit the main page of my blog or click on “What is Lean?” in the left column.
The WSJ had an article today about how GM is trying to avoid overproduction of hot new vehicles (like the Buick Enclave) so that they don't have to dump inventory to rental fleets or resort to using incentives and discounts to move metal. Both of those practices harm resale value, which is one buying point for many customers.
I read recently how Toyota's goal is to build one car less than customer demand, always keeping that in balance.
Toyota has half the inventory of GM, Ford, and Chrysler, not just in total numbers, but in adjusted “inventory per market share point.” Toyota carries fewer days of inventory than their competitors, clearly.
What do you think? Scroll down to comment or share your thoughts and the post on social media. Don't want to miss a post or podcast? Subscribe to get notified about posts via email daily or weekly.