I am responding to the Dec. 6 column by Mike Jackson, CEO of AutoNation ("Smaller inventories are 1st step toward sanity").
It takes a lot of courage for Jackson to voice his concern about Big 3 days-supply policy. He is one of few who is looking at the root of the problem.
While the Big Three Japanese brands (Toyota, Honda and Nissan) are reducing days supply, increasing dealer profitability and gaining market share, General Motors executives publicly defend their old ways of doing business and are losing market share and profit.
What worked in the days of low competition and production-driven economy does not work anymore.
You cannot force-feed the market for too long by offering a lot of marginal cars with huge rebates. Long-term results of that policy will be catastrophic for American manufacturers and their franchise holders.
People who say "some dealers like to have more cars on the ground" probably never worked in retail. Dealers like to have only cars that sell fast (and those don't sit on the lot too long).
The cost of additional storage, flooring and repairing a 100-day supply is huge to the dealer.
As Nissan Motor Co.'s Carlos Ghosn says, there are very few problems a good product can't solve. That is a fundamental of business, the automobile business or any other.