GM Plans to Limit LaCrosse Output to Kick ‘Overproducing’ Habit

[FarCenter]

By Doron Levin

July 17 (Bloomberg) -- General Motors Co. plans tighter output limits for the new Buick LaCrosse sedan than previous models as the automaker attempts to end its habit of overproducing after leaving bankruptcy.

GM aims to keep a “75-day to 90-day” supply on dealer lots, consistent with similar premium models such as Honda Motor Co.’s Acura TL, said Susan Docherty, vice president of the GMC, Buick and Pontiac brands.

“This is a new day, we’re going to make sure supply meets demand,” Docherty said at a press briefing yesterday for the LaCrosse in Plymouth, Michigan. The tighter supply reflects GM’s resolve “to make sure we’re not overproducing.”

GM, which exited Chapter 11 on July 10, plans to reduce its U.S. vehicle inventory to 550,000 by Dec. 31 from 904,000 at the end of 2008, she said. As GM’s first-half production in North America fell to the lowest in at least 24 years, the supply of vehicles in the U.S. slid to 69 days on June 30 from 83 a year earlier, according to Ward’s Automotive Reports.

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