Inventory at Level Not Seen in Two-Plus Years
Some carmakers pull back on production, further fatten incentives.
Stellantis says it's cutting Jeep production at two plants, blaming ICE sales limits in some states without penalty, though Jeep sales have fallen for nine straight quarters.
IMAGE: Stellantis
New-vehicle inventory is at its highest point in the U.S. since the spring of 2021, and days’ supply has hit 71 for the first time in two years, Cox Automotive says.
Year-over-year, supply of about 2.6 million units is up 57% and days’ supply by 17, Cox said.
The plentiful inventory, along with slower sales, have some automakers cutting production, it said, including General Motors and Jeep-maker Stellantis. Some are also increasing incentives and discounts, or both - those were behind November’s 1.5% lower year-over-year transaction prices.
Cox said days’ supply hovered around 70 throughout November and into December. The 60s range has historically been considered normal for the industry.
Electric-vehicle inventory, meanwhile, is growing faster than overall holdings, Cox said. It ended November at its high point of the year at 114 days’ supply, excluding Tesla and other makers without dealer networks.
Originally posted on Auto Dealer Today
More Showroom
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →
California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →