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 Industry
Structure Leads to Optimized Auto Listings
As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.
Read More →
Consumers Mixed on Economy, Finances
A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.
Read More →
EVs Closing the European Gap
Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.
Read More →
Early Intervention Saves Retention
Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.
Read More →
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
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 →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →