Swelling Auto Inventories Raise Worries
While salespeople at auto dealers around the United States may be anxiously waiting for business to pick up, workers at the Big Three's
auto plants have been working overtime for much of the past two months, according to a Reuters report.
That disconnect between weaker U.S. auto sales and aggressive production has Wall Street analysts forecasting a ballooning of new vehicle
inventories that could cut into earnings next year, especially at DaimlerChrysler AG's Chrysler arm and Ford Motor Co., Reuters said.
Dealer inventories are measured by days' supply, with 60 to 70 days a standard range for
Big Three inventories and a lower range for foreign automakers. October's weak sales left the industry with a 69 days' supply, higher
than normal but not alarming, according to Reuters.
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