GM and other auto manufacturers cutting production
- Thread starter 69hurstolds
- Start date
My wife is an insurance agent, she's having a hard time keeping up with clients calling in to put insurance on a new vehicle.
Car sales in this area haven't been affected adversely at all - for a period at the end of last summer and into the fall, most dealers were sold out. I have an aquaintance that is the F&I leader at the local Subaru/Hyundai delaer, and he made about 20% more in 2020 than his previous best year - he only makes money when new cars sell with extras - warranties, dealer add-on optionbs, etc. They ran out of 3 different models multiple times. At one point they had about 10 Forresters sold before they hit the lot.
I've heard it's a combo of mild increase in demand with mild decrease in production. I'd also like to attribute it a bit to the fact that many mfgers are exiting the car game and switching over to pickup and SUV production, which just so happens the pickup market is booming because people are building new houses and doing a lot of remodeling now, so the small contractor and construction business is flush with money.
Most automakers were shut down for at least a month in the spring of 20 so that's ~10% less production.
I am sure some people that were commuting and are now working from home decided to not get a replacement since they aren't driving as much. However I am also sure that some people who either rode public transport decided they would rather not be shoulder to shoulder in a covid capsule for 25 minutes and either bought a car. Or people who used to spend their money on concerts, bars, vacations, sports ect now have spare money they can't spend on their usual spots so they decide to buy a new car.
Someone I know buys a new custom order Sierra 1500 every 3 years for the past 20+ years. He went to order a 20 in fall of 19 and they said build date was April 20. Well the plant was shut down so they said November. He called dealer in November and said they have switched to 21 production now and cancelled all the 20 orders and he needs to order a 21. He was obviously mad because a 21 is more expensive than a 20. I am pretty sure the dealer did get his custom ordered 20 in November but it was sold on discount in 19 and the salesman realized they could make another 2 grand selling it to some contractor who walked in and sold it from underneath him.
Most automakers were shut down for at least a month in the spring of 20 so that's ~10% less production.
I am sure some people that were commuting and are now working from home decided to not get a replacement since they aren't driving as much. However I am also sure that some people who either rode public transport decided they would rather not be shoulder to shoulder in a covid capsule for 25 minutes and either bought a car. Or people who used to spend their money on concerts, bars, vacations, sports ect now have spare money they can't spend on their usual spots so they decide to buy a new car.
Someone I know buys a new custom order Sierra 1500 every 3 years for the past 20+ years. He went to order a 20 in fall of 19 and they said build date was April 20. Well the plant was shut down so they said November. He called dealer in November and said they have switched to 21 production now and cancelled all the 20 orders and he needs to order a 21. He was obviously mad because a 21 is more expensive than a 20. I am pretty sure the dealer did get his custom ordered 20 in November but it was sold on discount in 19 and the salesman realized they could make another 2 grand selling it to some contractor who walked in and sold it from underneath him.
My buddy manages a boat dealership. They've been averaging a 10% increase in sales over the last ten years. This year, well 2020, they averaged an 87% increase in sales. His average boat sale is 67k.... 😲
Man, we need to get to be good friends, seems like you're good for business
Haha, just lucky that's all. On the other hand, another friend installs pacemakers and I hope I never need a favor from him 😂
Nearly every day since Halloween that I have had off has been because of part shortages. If it weren't for the parts rationing, I don't know that I would be getting much time off at all this year.
