Tag: inventory

By on August 29, 2017

flooded cars (public domain)

You’ve already noticed an uptick in prices at the pumps, all courtesy of Texas oil refineries shut down by Hurricane Harvey, and further gas price hikes are on the way. However, the stalled storm’s impact on the automotive industry is only just beginning to be felt.

The damage inflicted on the hard-hit Texas coastline and especially in the swamped greater Houston area has the potential to make August a grim month for new car sales, coming in a year that hasn’t been kind to automakers in the United States. (Read More…)

By on August 16, 2017

2018 Buick LaCrosse - Image: BuickAs General Motors seeks to get the company’s U.S. inventory down to the industry average of 70 days’ supply by the end of 2017, once-prominent passenger cars are inhibiting the company from achieving its vital goal.

At Cadillac, where even the company’s three utility vehicles have far more than 70 days of stock, the brand’s four car nameplates have 137 days’ supply. At Chevrolet, where the brand’s somewhat excessive light truck inventory is largely due to an intentional increase in Silverado stock, there’s a 128-day supply of passenger cars. Granted, that figure is worsened by a stop-sale on Chevrolet Sparks that limited the city car to only 1,132 U.S. sales in the last three months and by a necessary Corvette stockpile in advance of a Bowling Green shutdown.

But it’s at Buick, where new and old designs alike are suffering from dramatically lower-than-anticipated demand, that GM’s inventory reduction methodology doesn’t seem to be taking hold. According to Automotive News, Buick dealers have enough LaCrosses in stock to last until the July 4th holiday next summer.

How did Buick develop such a LaCrosse glut, and is there a silver lining to this black inventory cloud? (Read More…)

By on August 12, 2017

2017 Hyundai Tucson - Image: HyundaiHyundai’s U.S. sales volume is down 13 percent through the first seven months of 2017, a year-over-year drop valued at 60,203 lost sales. Hyundai has fallen so quickly that its corporate partner, Kia, has managed to outsell Hyundai in America in each of the last three months.

But even with Hyundai sales falling nearly five times faster than the industry at large, and even with the two most popular products in the lineup — Elantra and Sonata — causing a 23-percent downturn in Hyundai passenger car sales, there’s good news to be heard out of Hyundai’s (shrinking) corner of the market.

The third-generation Tucson launched two years ago is a verifiable hit. Sales are perpetually rising. July 2017, in fact, was its best month ever.

But there’s bad news. Hyundai can’t get nearly enough Tucsons shipped across the Pacific from the compact crossover’s Ulsan, South Korea, assembly plant. (Read More…)

By on July 27, 2017

2017 Chrysler 200C Platinum - Image: ChryslerAt Hyundai dealers across America, there are 964 copies of the discontinued Azera strewn about, waiting for the final 964 Hyundai Azera buyers.

A raft of recently discontinued models has resulted in opportunities for consumers to potentially snatch up terrific deals while attractive financing terms remain on 2017 models. The Azera, a large volume-brand sedan unable to function in a market that’s rapidly turning its back on such vehicles, is only one such dead model. Production of the first (and only) generation of Jeep’s Patriot, for example, ended late last year, but there are more than 6,600 in dealer inventory, according to Cars.com.

Don’t wait too long, or you’ll end up like that buyer of a new 2006 Mitsubishi Lancer Evolution who paid $138,000 just this month, July 2017. (Read More…)

By on July 21, 2017

Detroit Hamtramck Assembly Plant Cadillac CT6 - Image: GMThe possibility, or even the necessity, of turning General Motors’ Hamtramck, Michigan, passenger car assembly plant into an SUV/crossover facility in the next half-decade has the company considering the discontinuation of the Chevrolet Impala, Chevrolet Volt, Buick LaCrosse, and recently launched Cadillac CT6.

According to a report in Reuters, General Motors is in talks with the United Auto Workers about replacing the increasingly unpopular products currently built in Hamtramck with in-demand utility vehicles. Also in question is the future of the Michigan-built Chevrolet Sonic and the Canada-built Cadillac XTS, which has enjoyed stays of execution in the past.

On average, GM had a 111-day supply of the six models in its U.S. showrooms heading into July 2017. 70 days’ worth of supply would be appropriate. Combined, the Impala, Volt, LaCrosse, CT6, Sonic, and XTS account for 6 percent of GM’s U.S. sales in 2017.

In 2008, the Impala, LaCrosse, and the Sonic’s Aveo predecessor — merely three of the nameplates — accounted for 12 percent of a much more voluminous GM U.S. operation. (Read More…)

By on July 19, 2017

Fiat 500L assembly plant Serbia - Image: FCAThe strike is over.

Inventory can once again ramp up.

After 21 days of concern over the future of Fiat 500L, FCA’s Serbian employees are back at work.

And, uh, it doesn’t appear as though dealer stock of 500Ls grew dangerously low in the meantime. (Read More…)

By on July 11, 2017

2017 Fiat 500L Trekking with Urbana Appearance Package - Image: FCAEntering June 2017, Fiat Chrysler Automobiles’ U.S. dealers had a 219-day supply of Fiat 500Ls, roughly 1,400 cars in stock for a nameplate that generates fewer than 200 U.S. sales per month.

At least for the time being, however, U.S. Fiat dealers won’t be accepting any new copies of the 500L.

Unfortunately for the Serbian economy, the Fiat 500L’s inventory reduction in the United States is merely a byproduct of a strike at FCA’s Kragujevac assembly plant. That facility, which is one-third owned by the Serbian government, produces 8 percent of the nation’s exports.

Consequently, Ana Brnabic, Serbia’s prime minister, is advocating for the Kragujevac line workers prompt return to work. “It will be very difficult for us in the future to bring new investors when there is no certainty that workers will honor contracts between unions and employers,” says Brnabic, according to Reuters.

Workers are reportedly after a 30-percent pay hike, as well as workload alterations and transit assistance. FCA wants its workers back. The Serbian government wants FCA to get its workers back.

But car buyers do not want Fiat 500Ls. (Read More…)

By on December 6, 2016

2017 Chevrolet Camaro V6 V8 1LE - Image: General Motors

Well, that was short-lived. After somewhat positive, very incentive-fueled results for the Chevrolet Camaro in September and October, November’s numbers told a very different story.

General Motors’ underwhelming launch of the sixth-generation Chevrolet Camaro produced significantly fewer sales in 2016 than the old Camaro managed in its final year. Camaro sales through the first eight months of 2016 were down 15 percent, year-over-year. But GM then threw down the incentive gauntlet in September with massive discounts, intending to clear an inventory glut.

It worked. Sort of. The Chevrolet Camaro outsold the Ford Mustang in September — and again in October — but inventory levels scarcely decreased. Autumn simply isn’t the time to sell large numbers of pony cars, even if the Camaro attracted more buyers thanks to average discounts of $4,700 per car.

Regardless, that two-month Camaro win streak turned out to be a two-month blip. General Motors scaled back Camaro incentives in November 2016. Consequently, Camaro volume declined, the Camaro was once again handily outsold by the Ford Mustang, and there are now 177 days of Camaro supply across America. (Read More…)

By on October 11, 2016

2015 Ford Mustang Flat Rock production

Update: Added official statement from Ford.

Ford Motor Company is briefly shutting down production of the Ford Mustang at the car’s Flat Rock, Michigan, factory in a quest to avoid ballooning inventory ahead of the winter months, Bloomberg reports.

Year-over-year, U.S. sales of the Ford Mustang tumbled 32 percent in September 2016 in response to rapidly elevating incentives on the Chevrolet Camaro. As the Camaro outsold the Mustang for the first time since October 2014, Mustang sales fell to a 23-month low, causing inventory at the end of September 2016 to rise to an 89-day supply, up from 71 days of supply one month earlier.

The temporary idling at Ford’s Flat Rock facility will allow Ford to bring U.S. Mustang inventory down to more appropriate levels. 60 days of inventory is considered normal.  (Read More…)

By on September 2, 2016

2017 Subaru Forester

Sales of new vehicles declined by nearly 4 percent in the United States in August 2016, a year-over-year drop which followed flatlining sales over the previous three months. Bucking the trend to no small degree in August was capacity-constrained Subaru, which earned 4 percent of the market by selling more than 60,000 new vehicles for the first time in the company’s history.

Making Subaru’s achievements even more impressive: according to TrueCar, discounts in Subaru showrooms in August were 78-percent below the industry average. (Read More…)

By on August 22, 2016

2016 Chevrolet Camaro SS yellow“Do you want to get in and out of your car easily and do you want to be able to back out of a tight parking spot?” Ford Mustang buyer and former Chevrolet Camaro shopper John Oglesby wrote to Car And Driver for its September 2016 issue. “If so, you need the Mustang.”

John Oglesby is truly representative of the market as a whole. After holding its position as the top dog in the segment for five years, the Chevrolet Camaro predictably lost its title to the Ford Mustang in 2015, the year of an all-new Mustang; the last year for the now-departed fifth-generation Chevrolet Camaro.

2016 hosted the launch of an all-new Chevrolet Camaro, but a return to sales leadership wasn’t in the cards. Not at any point since the nameplate’s 2009 return has the Camaro sold so poorly. Year-over-year, U.S. Camaro volume is down 15 percent compared with 2015, the Camaro’s previous worst year since returning. (Read More…)

By on June 19, 2016

2015 BMW i3 Range Extender, Image: © 2015 Alex L. Dykes/The Truth About Cars

Have you been considering a new BMW but only have enough coin to buy one of Bavaria’s finest? At least one BMW dealer in the U.S. might have a solution.

If you don’t mind buying a new BMW that’s been languishing on the lot for a year, Century West BMW will throw in a lease on a BMW i3 on the house.

(Read More…)

By on May 8, 2016

2016 BMW 340i Exterior Front 3/4, Image: © 2016 Alex L. Dykes/The Truth About Cars

BMW went on a mad rager last year as it did everything it possibly could to claim the U.S. luxury sales crown from Mercedes and Lexus — and now katzenjammer is in full effect.

The premium German brand is looking at piled-up stocks of cars sitting on dealer lots. Predictably, those dealers aren’t happy, and BMW is trying to inject some saline to recover.

(Read More…)

By on April 23, 2015

inteior

I come to bury Derek Kreindler, not to praise him.

No, wait.

I come to praise Derek, not to bury him.

Scratch that.

I come to agree with Derek, and to disagree with him. And to agree with him again. Wait a minute, it will make sense.

(Read More…)

By on March 27, 2015

2015 Honda CR-V Exterior.CR2

While compact SUVs are doing well in the showroom, their success comes at the expense of midsize and compact car sales.

(Read More…)

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