Dealers to GM: Give us More Cars

(AP Photo/File)

Following a pattern of economic improvement in recent weeks, General Motors was surprised to find that its dealers want up to four times more cars than the company had predicted it would build in October, reports the Detroit News. Usually automakers' projections are not so far out of line with dealer needs. In one glaring example, GM planned to make 8,000 Chevrolet Equinoxes, but dealers have asked for 30,000.

"Showroom traffic is getting better and consumer confidence is improving," Tom Stephens, GM's vice chairman and head of global product development, told the Detroit News.

Stephens points to the "cash for clunkers" program, GM's exit from bankruptcy in July, a thinned-out inventory and a new 60-day return policy as reasons for the high demand. He says the company plans to continue to increase production through the year.

Other car makers, including Ford and Chrysler, have also reported increases in production. But one industry analyst warned not to get too excited. Dealers always ask for more cars than they sell, and the auto sales slump continues.

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