Episode #1273: GM is staying lean to outmaneuver the next sales slowdown. AI’s appetite for memory chips could spark a new supply squeeze across autos and tech. Retailers are proving that telling better stories sells.
Show Notes with links:
- General Motors is rewriting its inventory playbook, running 30–40% leaner and hoping that tighter supply, stronger cash flow, and faster decision-making could turn the next cycle into a competitive advantage.
- S&P Global Mobility forecasts U.S. sales down 2.5% to 15.8M units as affordability and softer EV demand weigh on the market.
- GM is targeting a 50–60 day supply versus the pre-pandemic 100+ days.
- Leaner inventory gives GM more flexibility to adjust incentives in a downturn without crushing profitability.
- Dealers have felt the squeeze, especially on affordable models, prompting GM to stage select Trax and Trailblazer units at ports to speed delivery.
- CFO Paul Jacobson summed up the strategy: “It’s easier to do when you have less inventory in the system because you can just respond much more quickly.”
- Just when the auto industry thought it survived the chip crisis, here comes round two—this time powered by AI. Data centers are devouring global memory supply, forcing automakers to brace for tighter supply, higher costs, and potential production headaches.
- AI data centers are soaking up global DRAM and memory production, with Western Digital and Seagate already sold out of most 2026 capacity.
- Memory chip prices have jumped 90% quarter-over-quarter, prompting PC makers like Dell to raise prices 15–20%.
- Tesla’s Elon Musk says the solution may be vertical integration: “We’re going to hit a chip wall if we don’t do the fab.”
- Retailers are doubling down on something we at More Than Cars know well—storytelling sells. Brands are shifting from simply stocking products to crafting narratives that spark emotion, build loyalty, and turn casual shoppers into long-term fans.
- Nordstrom says department stores no longer “introduce” brands—they help tell their story and build deeper consumer connection.
- Five Below credits curated social storytelling—merchandising and marketing working together—for stronger engagement with younger shoppers.
- Under Armour’s Kevin Plank says brands must inspire emotion: “The world does not need another capable apparel and footwear manufacturer. The world needs hope and they need a dream.”
- Today’s show is brought to you by ESi-Q. ESi-Q measures employee satisfaction and provides actionable insight into what’s driving employee engagement and turnover - before employees leave.
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