General Motors Corp. says it has plenty of cars to sell despite a strike that has forced the shutdown of more than half of the automaker's North American assembly plants.
But analysts cautioned that the world's largest automaker could lose millions of dollars if the strike continues. In all, about 60,000 workers have been idled.The eight-day strike at two Delphi Chassis brake plants could close as many as 27 of GM's 29 North American assembly plants by late Tuesday, company sources told The Detroit News, citing internal documents.
The only North American assembly plants that will probably keep running are Dora-ville, Ga., which is gearing up to build the redesigned GM minivans later this year, and the Chevrolet Corvette plant in Bowling Green, Ky. The Corvette brake system is not supplied by Delphi Chassis.
GM had an 82-day supply of cars at the end of February and a 79-day supply of trucks. Generally, a 60-day supply is ideal.
"Inventorywise, we're in a pretty good position," said GM spokesman Tom Klipstine. "It's higher than normal."
Still, GM could lose $250 million a week if all 29 North American assembly plants are idled, said David Healy, a financial analyst with the New York-based Burnham Securities. GM earned $6.9 billion in 1995.
And Ward's Automotive Reports said that some GM models, such as large sport-utility vehicles and the fast-selling Saturns, already had tight supplies. The supply of Saturns at the end of February was 49 days and that of GMC Yukons only 26 days.