clarinews@clarinet.com (JAN A. ZVERINA, UPI Auto Writer) (02/10/90)
CHICAGO (UPI) -- General Motors Corp. said Friday there may be a shortage of new vehicles this spring, although analysts said they believe GM may be trying to keep sales fueled after a relatively robust January. Meanwhile, GM Chairman Roger Smith said GM closed out the 1980s maintaining its position as the world's largest company, and that its worldwide sales for 1989 exceeded $125 billion. GM will post net earnings for both the fourth quarter of 1989 and the full year next week. Smith also said the carmaker will decide within the next 60 to 90 days on whether it will actually produce the Impact, its new experimental electric car shown at the Los Angeles Auto Show last month. GM President Robert Stempel, during a press preview for the Chicago Auto Show, said buyers could find supplies of selected models tight after massive production cuts last month at numerous assembly plants. ``We have 200,000 less cars in the marketplace than we did at this time last year,'' he said. ``Some dealers failed to look out 60 or 90 days and failed to forecast what the needs of the marketplace will be,'' said Pontiac General Manager John Middlebrook. A spokesman for GM's Oldsmobile division said there could be shortages on certain models in some parts of the country because of the production cuts, which trimmed inventories bloated from the sales stall that began last October. ``Dealers may have to trade some models to meet demand,'' he said. But GM could also be trying to keep sales going despite less lucrative buyer incentive programs put into place earlier this month by all three top carmakers. ``I really can't believe GM is going to have severe product shortages, although there may be some instances where they are tight simply because they are introducing a new product, like the Chevrolet Caprice,'' said analyst Cynthia Certo, of Integrated Automotive Resources Inc., in Wayne, Pa. Some existing models, like the Chevrolet Cavalier and Pontiac Sunbird compact cars and its full-sized pickup trucks, could also be in short supply because of generally lower production levels compared with one year ago. GM's supply of new cars as of Jan. 31 was equal to 75 days, down from 100 the month before. Ford Motor Co.'s supply dropped to 72 from 96 days, while Chrysler Corp's level fell to 75 from 100 days as of Dec. 31, 1989. ``But there was almost no production at GM and relatively little at Ford and Chrysler,'' Certo noted. On Friday, GM's Chevrolet division announced prices for its all new full-sized Caprice sedan to go on sale this spring as a 1991 model. The base model will start at $15,995, up from $14,525 for the 1990 version. The fancier Caprice Classic will start at $17,370, vs. $15,125 for the current version. Chevrolet General Manager Jim Perkins explained the substantial price hikes by saying the new versions have a higher content of standard equipment that includes anti-lock brakes and a driver-side air bag.