GM dealers slowing down orders - brands' uncertainty

Posted on Saturday, 14 March 2009 , 08:03:07 byEmil

Filed under gmgeneralmotorssaabsaturnhummersloworderGMSaturnSaabHummer

GM dealers slowing down orders - brands' uncertainty

GM’ Saturn, Saab and Hummer brands are not dead yet, but a few dealers are now curtailing car orders like they were. Showroom traffic is slowed now to some trickled since General Motors announced the 3 brand names were up there for 'strategic review' giving Hummer, Saab and Saturn dealers small incentive for ordering new autos.

The sales in February were quite dismal for all 3 brand names, having Saturn posting in the best month - a 57 % decline in sales. Saab and Hummer saw sales dip being 62 and 68 %, in February.

So, many dealers stopped all car orders. Stocked auto inventories are not helping that, either. 'Ordering cars wouldn’t be on my agenda or a lot of other GM dealers. I’ve got plenty' Dan Jonuska, a dealer for Saturn in Arizona, told The Detroit News. 'People are hearing about Saturn’s future and are looking for huge discounts, going out of business sales.'

This is bad news for General Motors on a few fronts. After a massive 1st quarter slowdown production, GM plans to ramp up the 2nd quarter production. If the dealers are not ordering, many vehicles would fleet.

The accounting system of GM books revenue also as cars roll off the buildinfg cars floor, not when all of them are sold by the dealers, that could put a stop, chokehold on the cash flow for GM.
but, if GM is receiving an approval seal from the government this month, this could give that car giant some momentum. But if it's bad news on March 31st, General Motors could face a true uphill fight.