The prospect of bankruptcy is finally sharpening the knife at GM. As the blog noted last month, inventories are at astronomical levels.
781000 vehicles were in stock at the end of February, and this figure had only dropped by 15000 vehicles during March to 765000 vehicles. This equates to around 6 months supply.
Now the inevitable is finally under discussion.
According to the Wall Street Journal, GM will shut most of its plants for 2 months over the summer, instead of its normal 2 week break. Chemical companies will also take a big hit, with lost sales of c$2500 per auto.