Analysis: Drop in Auto Sales Prompts Rise in Inventories, Layoffs
While auto sales are down with shelter-in-place policies in place, that fact is also ensuring that dealerships are in a strong position in terms of inventory.
April 9, 2020
April 9, 2020—Auto sales plummeting in March are followed by more dire predictions for April, reported The Detroit Bureau.
Although sales are lackluster, it is a time that dealerships are in strong position inventory-wise.
As those inventory levels rise, automakers in the U.S. continue to take actions to manage their resources: human and capital. Honda Motor Co. and Nissan Motor Co. have furloughed thousands of workers at their U.S. plants and facilities due to the pandemic, Reuters reported. Nissan noted it was laying off about 10,000 U.S. hourly workers starting April 6 after suspending operations at its U.S. manufacturing facilities through late April.
Honda will guarantee salaries through April 12, after suspending operations March 23. The plants will be closed through May 1.
