GM Parts Start Stocking Out

GM Parts Start Stocking Out

October 25, 2019
David Little, Ph.D.

As the UAW strike continues, GM faces stockouts on repair parts. Dealer lots are getting low on some models as well.

Before the looming strike, GM built up to an average of 77 days of supply of cars on dealer lots.  The typical days of supply is 60-65 days of inventory on dealer lots.

Video Spotlight: In tentative UAW deal, GM trades cash bonuses for future flexibility

This post is based on the NBC News article, Bad luck if your GM car needs spare parts or a repair, as UAW strike continues into its fifth week, by Paul Eisenstein, October 14, 2019, and the YouTube video, In tentative UAW deal, GM trades cash bonuses for future flexibility, by PBS News Hour, October 17, 2019. Image source: Shutterstock / Syda Productions

Discussion Questions:

1. Today’s vehicle manufacturing is based on lean/JIT systems.  How much leverage does UAW have in negotiations today compared to yesteryear?

Guidance: Remind students that vehicle manufacturing in the 1970s did not embrace quality management, lean/JIT, or many other common practices of today’s operations.  This is a good opportunity to review the development of modern operations.  Given that lean/JIT is Continue reading →

,
Facebook
Twitter