General Motors: A truck overload

The best year for U.S. auto sales since 2007 hasn’t been enough to boost General Motors’ share price, in part because its dealerships have too many trucks parked on their lots. GM said it entered July with more than five months’ inventory of full-size pickups, the most since April 2009. This isn’t accidental: GM stockpiled new trucks to ensure dealers had enough supply while factories retooled to make redesigned pickups next year. The plan could backfire if sales keep running below the company’s initial estimates.

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