General Motors Strike - PartsEdge
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General Motors Strike

We have had several dealers over the past week or so inquire about the inventory reduction that has been caused by the current GM Strike.

 

As you are aware, GM and the UAW have come to a tentative agreement and a union vote should be pending as we write this.  

 

We wanted to see what impact this has had overall on most of the GM inventories we work with.  Below is a summary report to show you just how this has impacted dealership parts inventories! The summary represents 21 GM Inventories that we work with, and the changes are pretty dramatic!

 

The values are from September 14, 2019, compared to October 14, 2019 Inventory:

 

1) There was a $6,219,366 reduction in inventory, or a 20% overall reduction in inventory value. **This is huge considering this was over a 30 day period!

 

2) Of the Inventory reduction value, 61% was from Productive Inventory. 

 

3) Of the Inventory reduction value, 24% was from Excess Inventory (thinning out depth).

 

4) Of the Inventory reduction value, 13% was from Forced Stock Inventory.

 

5) Of the Inventory reduction value, 2% was from Obsolete Inventory.

 

It truly shows what a painful impact this strike has had. Based on the RIM Program, it could take as much as 8-12 months to recover from such a reduction in Dealer Inventories for General Motors. Getting stock back into the depots and out to the Dealerships is going to be a difficult process, with backorders probably being plentiful for a couple of months!  

 

This is just 21 dealerships, imagine the overall impact. If you have any questions, send us a message