Part 7/14:
The Toll of Overproduction and Industry Overreach
Industry giants like Ford overproduce models, eager to maintain their market dominance—such as their 49-year streak as the best-selling pickup truck brand. However, this overproduction contributes heavily to the glut of inventory, leading to a cascade of economic issues: dealerships locking in high flooring costs, rising negative equity, and declining wholesale values. Wholesale vehicle prices are plummeting, forcing dealers to offer more substantial discounts rather than wholesale the vehicles at a profit.