September Inventory Boost Not Enough

U.S. dealers had 2,789,120 new light vehicles on their lots at the end of September.

Up significantly from prior-year’s 2,071,538 units, the September tally was just 44,160 more than the August count and remained well below the historical levels for this time of year.

Prior to 2009, dealers inventoried an average 2,977,000 LVs on Sept. 30 in preparation for the fall new-model buying season, some 188,000 units, or 6.7%, more than this year.

September’s modest unit-stock increase, coupled with the month’s robust selling rate, kept the days’ supply barometer at a subpar 59, barely ahead of August’s 58. Both months’ results are well below the 60-70 days’ industry norm.

Last year’s 49-day supply was an anomaly, reflecting the dearth of Japanese-make cars on dealer lots.

While the inventory of Japanese LVs was 63.1% higher last month than on Sept. 30, 2011, the increase barely kept pace with sales, meaning that further inventory gains will be needed in October to boost days’ supply.

For example, combined stock of Toyota, Lexus and Scion cars was 71.8% higher last month than a year ago, but days’ supply remained at a weak 49.

Likewise, Honda and Acura inventory more than doubled the prior-year count, but equaled just 52 days’ supply, with the Honda brand posting just 49 days’.

Meanwhile, Mitsubishi’s outsized  109 days’ supply was due to a whopping  621 days’ of the slow-selling “i” electric car, a situation the company says will improve as it delays indefinitely production of ’13 models for the U.S. market.

Overall, Asian brands counted 1,059,689 units in stock in September, 59.8% ahead of year-ago’s 663,287, but 0.6% less than the August 2012 tally.

At the opposite end of the spectrum, the Detroit Three posted 71 days’ supply at the end of September, up sharply from 67 days’ the prior month and 62 days’ year-ago.

That included a sharp increase at General Motors to 82 days’ supply last month from 77 in August and 67 last year, due in part to new or revised ’13 models just making their way to dealer lots in sufficient numbers to boost October sales.

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