August LV Inventory Edges Up

With most North American plants back to work in August, U.S. dealers bolstered inventories by a much-needed 93,757 new light vehicles to 2,747,960 units, the third-highest level this year behind June and March.

Still, robust sales limited the buildup to a below-par 58 days’ supply, up just 5.5% from July’s 55 days’. Nevertheless, that was well above the 49 days’ posted year-ago, when Japanese-make dealer lots nearly were devoid of vehicles.

Historically, dealers have held an average 2,793,000 LVs in stock this time a year, the highest being 3,599,520 in 2004, the lowest a mere 1,406,266 in August 2009, amid the U.S. government’s Cash for Clunkers program and massive summer plant shutdowns.

Light trucks accounted for more than half the August inventory increase, with an additional 51,837 units arriving on dealer lots. That boosted the light-truck days’ supply to an ideal 65 from prior-month’s 62 and year-ago’s below-normal 56.

On the other hand, the supply of cars available for sale at month’s end edged up to only 51 days’ from 49 in July and 40 in like-2011.

The low number of cars on lots likely reflects the numerous product launches taking place this year, including the all-new Dodge Dart and Honda Accord.

It also reflects the struggles at Kia and Hyundai to keep dealers supplied with enough of their hot-selling vehicles. As has become the norm, the sister companies again vied for the lowest LV days’ supply of any brand at just 29 days’ each, although that was up from a mere 21 days’ the prior month and year-ago.

Overall, Asian brands bumped their days’ supply to 49 in August from prior-month’s 46 with the addition of 38,885 units to the stockpile.

The Detroit Three added 39,535 LVs to the August count, although strong sales trimmed days’ supply to 67 from 68.

European makes added 15,377 LVs to dealer lots in August, boosting days’ supply to a still-subpar 55, but up significantly from the weak 47 days’ posted in July.

Although remaining near the bottom, BMW managed a 34 days’ supply last month, more than double July’s 15 days’, thanks to a 77% increase in available inventory as ’13 models began arriving in larger numbers.

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