Automakers can't slash production fast enough.(NEWS)

Automotive News, May, 2009

Byline: Jesse Snyder

By slashing production, automakers have reduced their inventory of unsold new vehicles by 672,500 in the past 12 months. Even so, most have too many cars and trucks on hand.

On May 1, the industry's stockpile was 2.67 million. That's the lowest month in a decade and down 20 percent from May 1, 2008.

But at April's woeful annualized selling rate of 9.5 million, that's enough vehicles to last an uncomfortably long 85 days.

Automakers prefer a 60-day supply. Beyond that, costs soar. Dealers pay more for floorplanning, and carmakers pay more for sales incentives.

General Motors and Chrysler LLC are the worst off with a supply of more than 110 days. Toyota Motor Sales U.S.A. cut 146,200 units from stock...

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