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THE MAD DUCK
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Goes back to the 60s at least. Media always acts like it’s big deal. I figure it’s a win for buyers and workers.
The reason to plan on shopping for a vehicle at end of quarters and better yet at end of year. My last couple LXs were retiree lease e.o.y deals. Even with the employee/retiree discount the dealer always came up with some way to drop the lease rate when I started towards the door. The catch is to find just what you want in stock. I haven’t ordered a car since my 81 K.
 
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Yes, while it keeps the factories humming, and the workers working and of course cheaper prices for customers. It does nothing but harm to the company in the long run if this becomes the norm. Arguably, Chrysler has never recovered from the 70s when this was very widespread on their part. Iacocca supposedly stopped it, but the damage was done. It takes very strict disapline to align sales and production, couple that with a contract year, and bingo, unsold cars everywhere.
 

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There were various reasons the sales bank grew. Chrysler always seemed to have a bank of sorts. When it grew to a 100 plus day supply it became “news”. Some years a new model’s popularity was miscalculated or a general downturn in the market caused the bank to swell. Sometimes they just missed the market. Like building out all the first Pacificas loaded to the gills that left dealers screaming for more affordable base models. Or like the 69 “C” bodies that started off slowly in a slow sales market in general.
In 69 model year Dad ended up driving 8 different company cars. By first of the year he was directed to turn in his ordered cars and chose replacements from the sales bank of “C” bodies. Some years he’d change cars mid year. Always “C” and “A” body models. When Pacifica came out he was offered a discount lease rate right off the bat if chosen from the sales bank. These low mile, like new, employee company cars were very popular with out of state dealers.
And you’re right, I don’t recall reading of a Ford or GM sales bank in the media.
 

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At one point, post Lido, every vehicle built was a "sold" unit.
They would tell dealers to snap them up and then the dealers would have them sitting around, if they didn't sell.

That's not the same as a sales bank, where the vehicles are piled up in storage lots, not considered "sold" vehicles. The dealers would then buy them from the "bank".

There are vintage photos of the Michigan State Fairgrounds and Windsor Raceway, in 1979, that had a bunch of unsold cars all over!
Some sat so long the batteries went dead and the rotors rusted to the pads!

Not exactly sure how they calculate "days supply" these days. Unsold cars at dealers, cars in transit, cars in a sales bank???

As far as days supply, they consider 60 a good number. There are various reasons, per model, why the number could be higher or lower and still be considered "ok".
 

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So could all of these over-stocked storage lots, all over the world, be considered "sales banks" where somebody lost the key and can't get to them :rolleyes:

I mean, when do they ever plan on selling all of them ;)



If no new cars were made, how long would it take to clear all of these storage lots?

If I wanted the one that I have indicated with the yellow arrow, how long do you think it would take them to get it out of there :p

 

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Need to know more about those pics you posted.
Are they in transit storage? Going overseas??
Or really just built cars without a home, still owned by the manufacturer?

There IS a worldwide glut of vehicle capacity, as we all know.
Every manufacturer thinks THEY will be the ones to win the sales war!! lol.....

At FCA, once a car is "sold", it counts as a sale. When sales figures are released, those are the vehicles being accounted for.
Doesn't matter if your local dealer has thousands of cars on HIS lot! That's now HIS problem!
His own, personal 'bank' of cars!

If FCA is now building cars and storing them just for the sake of keeping plants running, that's just economically WRONG.
 

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fca1.png

Keep in mind: SOLD means to a customer. The dealer already bought the vehicle from FCA !!!
 

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THE MAD DUCK
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Discussion Starter #10
The Jeep Cherokee Trailhawk I Bought in mid - August had Turned 5 Months Old.
It was Made in Early March. It Had a VIN Specific Rebate of $1000.00.
I Asked my Salesman, Duckhunting Buddy what that was About, He said there were doing It on
Certain Models to "Help them Go Away" .
 

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If no new cars were made, how long would it take to clear all of these storage lots?
It looks like the first picture was taken above an airport runway, hopefully no longer being used. Let's also hope than no plane needs to make an emergency landing there.

I saw a large vehicle storage lot near I-275 in either southern Wayne County or northern Monroe County. Don't know if it was for new or used cars, or towed vehicles. As DC reported, one of the places Chrysler used to store them was at the Michigan State Fairgrounds. Where do they store them now?
 

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Most of those pictures of unsold cars are 10 years old now. Some are nothing more than import/export lots.
 
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So could all of these over-stocked storage lots, all over the world, be considered "sales banks" where somebody lost the key and can't get to them :rolleyes:

I mean, when do they ever plan on selling all of them ;)



If no new cars were made, how long would it take to clear all of these storage lots?

If I wanted the one that I have indicated with the yellow arrow, how long do you think it would take them to get it out of there :p

LOL
 

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There were a lot of recalled VW diesel vehicles at the old Silverdome lots.
Those lots shown above might be recalled Takata airbag cars.
Often vehicles would be stored in these lots waiting parts from outside suppliers. Front fascias due to supplier fab issues and radios not delivered due to a strike.
 

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So are all new cars being built eventually forced onto the dealerships to be moved?



Remember the good old days when you went to a dealership and actually "ordered" a car, cruising the options list and selecting what you wanted. :cool:

1965 Mercury Commuter Station Wagon, my parents had one like this, came with a special dash plaque with their name on it. Took many trips around the US in it when growing up :)

 
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To answer your question, yes...
 

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I am okay with this. Here's why:

Dealers order the same cars. Always! New colors? No thanks. New options? Nah... Actual mid-level vehicles? Why not just upsell them to a the nicer trim for another $50/month?!?

Dealers will order black, white, & shades of gray. They'll throw everything into one and nothing into another. 4x4s will come without tow hooks or skid plates. Everything will have black interior, except for the odd splash of some odd blue color that they'll throw a red or tan interior into... Mid-level cars won't exist - everything will either be an add car, or have every bell and whistle it can. It's bad.

I'm serious! I had to twist the arm of the dealer I worked for to order a 2010 Challenger in Plum Crazy with the optional white interior stripes and a manual transmission (this was the first year PC was available!) - they were horrified it would never sell! (It was sold for more than sticker well before it even hit the lot.)

The manufacturers cannot rely on the dealers to try new features, new colors, etc. They just won't. They keep pointing to what sold in the past and using that as "proof" of what will sell in the future. They are too blind to see that they missed a bunch of sales by not having any variety. Dealers also will NOT encourage customers to order a car configured how they want. Why wait 2 months for a sure-thing at a fair margin when you can twist their arm and get them into something you have today!?!

We need to end the current dealership model anyway... Dealers should be showcases and nothing more. Just like mattresses, furniture, electronics, etc. Come in, try everything out, and then go to the "warehouse" and pick up the one you chose... Fair prices, no haggling, more options, better knowledge transfer...
 
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