The Nikkei [sub] comes with the good news that “Japan’s automakers have finally resolved the inventory shortages that have hindered their sales in the U.S. market.” According to the Tokyo wire, Japan’s automakers “are in a better position to compete with their Western and Korean rivals,” now that lots are stocked again.
Well, not quite. Japanese inventories are still fashionably slim compared to some Detroit chubbos. Pop some Tums and have a look.
According to data compiled by Automotive News, Honda has a 54 day supply. Around two months are considered normal for the industry. Toyota however has only a 32 day supply, smaller Subaru has 30.
Let’s take this opportunity to look at all lots.
|Days of supply||Units||Days Apr 2012||Days Mar 2012|
The Detroit 3 definitely have no shortage of cars with an average of 70 days’ supply on the lots. The Europeans are at the current industry average with 53 days of supply. The Japanese have 43 days’ worth on the lots, but “the Koreans” have only 27 days.
|Units||Days 1 Apr 2012||Days 1 Mar 2012|
|JAGUAR LAND ROVER||9,200||47||48|
Indeed, Hyundai-Kia’s supply is the lowest of them all with only 27 days until empty. As indicated by the Detroit 3 number, American makers are generously stocked, but averages can be deceiving.
Ford and Chrysler carry a regulation two month supply on the books.
The absolutely worst of Detroit is GM with a nearly three month supply. Only consolation: Deadman walking Mitsubishi carries two days more. While days to sell are down industry-wide, inventory is increasing on GM lots: From March to April, it took a week longer to move an already sluggish inventory.
GM’s lot queens: Escalade EXT (144 days), Yukon (136 days), Yukon XL (133 days), Sierra (132 days), CTS (124 days), all Cadillac cars (123 days), all Buicks (121 days).
Have a look at this chart: No wonder that GM is losing market share. The cars are all sitting on the lot.