Right now I’m watching Chevy dealers slash prices by tens of thousands of dollars, and I’ve seen discounts hit $32,000 per vehicle. That’s not a “big sale” — that’s a survival move when inventory gets so out of control the whole system starts choking. In this breakdown, I walk through how this kind of collapse starts: production forecasts go off the rails, plants keep building because the machine doesn’t stop easily, and then logistics hits the wall when you physically can’t move or store the volume fast enough. From there, the pain shifts straight onto the dealer lot. Floorplan debt balloons, interest rates bite harder, and once one store detonates the price floor, everyone else panics because holding MSRP becomes suicide. I also get into the ripple effects most people miss: staff morale collapses, dealer groups start talking legal pressure and mutiny, investors downgrade and dump the stock on uncertainty, and banks tighten up when collateral values drop and negative equity spikes. Then it spreads into used auctions, supplier order cuts, policy pressure in Washington, and foreign competitors taking advantage while GM is stumbling. Bottom line: this isn’t isolated — it’s a chain reaction that can reshape pricing, trade-ins, and how car buying works next.