April U.S. Dealer Inventory Still Short

U.S. new light-vehicle dealers closed April in the same predicament they’ve been in for several months, namely lots stocked with too many of some models and not enough of most cars, cross/utility vehicles and vans.

The April inventory count turned up 2,736,985 cars and light trucks either at or in transit to dealers, some 16,000-plus units less than the prior month, although a modest sales retreat nudged the days’ supply tally to 56 from 55.

That remained a far cry from the ideal 60-70 days’ supply auto makers prefer to maintain, especially in the spring when inventory usually increases to meet rising demand and carry dealers through the summer vacation/changeover factory shutdowns.

Cars were especially scarce, registering only a 45 days’ supply in April. That’s identical to the prior month but ahead of the weak 42 days’ posted year-ago, when assembly plants still were ramping up output of several popular new models, including the Ford Focus and Chevrolet Cruze.

Light-truck inventory appeared to hit the sweet spot at 67 days’ supply for the second consecutive month, but that masked a subpar 57 days’ worth of CUVs and 54 days’ supply of vans. Pickup inventories soared to an outsized 93 days’ supply from prior-month’s 89.

At 79 days’ supply, General Motors and Volvo had the highest reading of all auto makers in April, except for bankrupt Saab’s 95. Nissan followed closely with a 78-day stock. Light-truck inventories were high across the board.

The Detroit Three posted a combined 68 days’ supply at the end of April, compared with 70 in March. Asian auto makers tallied 46 days’ as against 43, and European makes posted a 43-day supply vs. 48.

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