Dealers seeing glut of inventory

Auto dealers across the United States are seeing inventory piling up on their lots as carmakers make more cars than are being sold. Dealers had close to three months of cars and trucks on their lots at the start of February – 85 days, which was 22 days more than the beginning of 2017 and eight days more than one year earlier.

Many dealers say that sales are decent to good, but that the supply is still outpacing the demand. Some are actually reporting that they’ve had to rent off-site space to handle the overflow.

The surplus of vehicles seems to suggest that automakers will either have to cut back production or ramp up discounts in the face of a somewhat softening market. It also shows that automakers have continued to supply dealers with new cars as though last year’s record sales pace would continue in 2017. Another takeaway from the study is that carmakers have struggled to reduce production of passenger cars, even though the sales trend has been strongly toward trucks and SUVs.

 

Of the eight major auto brands in the United State, only GM, Honda and Volkswagen are expected to make sales gains this month. Meanwhile, experts believe that all brands should moderate production in order to lighten the load on already burdened dealers.

(Source: www.mcall.com)

Let us know! How many days’ worth of vehicles do you have on your lot?

 

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