January U.S. Inventory Back on Track

U.S. light-vehicle inventory resumed a more normal 67 days’ supply in January with an additional 187,552 cars and trucks reaching dealer lots, up from December’s weak 51 but less than prior-year’s outsized 71.

Overall, unit stock rose to 2,541,222 in the Jan. 31 count, climbing 8.0% from the prior month and 4.5% ahead of 2,432,566 year-ago.

The increased inventory was welcomed by sellers of Japanese brands that had been struggling with a dearth of stock for the past seven to eight months as a result of last year’s natural disasters in Japan and Thailand.

However, the good news was not universal.

Five brands’ supply grew to more than 100 days,’ compared with December and prior-year counts. Two other brands, already suffering from bloated inventory, saw their stock rise even further, not including dying Saab, whose daily inventory has fluctuated widely given its ultra-low selling rate.

The Detroit Three’s combined LV inventory increased 6.0% in January, with days’ supply moving to 86, above the 60-70 range considered average. It also was up from December’s 64 and prior-year’s 75.

Saab aside, Lincoln dealers, at 142, posted the highest January days’ supply of any brand, followed by Fiat’s 132.

For Asia/Pacific brands, an influx of 113,891 additional units nudged their collective days’ supply to 53. While still subpar, it was well ahead of 40 at the close of December. Hyundai and Kia, at 30, again tied for the industry’s lowest days’ supply, although it was a slight improvement from 28 in December.

However, low-volume brands Suzuki and Mitsubishi saw their January days’ supply rise to 119 and 105, respectively, from 111 and 65 in December.

European brands also showed improvement, although at 47 days’ compared with prior-month’s 42, remained well-below normal. Ignoring Saab, days’ supply ranged from Audi’s 37 to Volvo’s 65.

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