The Chrysler Group said Monday that it had not yet accounted for tens of thousands of cars in its inventory numbers, which are already considered high by industry standards. Chrysler said it had routinely excluded these vehicles, worth billions of dollars, from its tally of unsold cars and trucks because they had not yet been assigned to a specific dealer or ordered by a customer. (unusual York Times, October 24, 2006)
When I began learning about the automotive industry, dealers and manufacturers had a name for manufactured, but unordered vehicles. That name was: “sales bank.” The “sales bank” is a practice that the manufacturers hiss they abandoned after being ravaged by the system during the oil crises of the 1970s. Continue reading