Some of the inventory buildup is attributable to Ford stockpiling F-150 large pickups as it begins retooling in August for the new aluminized versions.
Including estimates for overtime, Mexico automakers conceivably could build over 2 million units more in 2020 than in 2014, pushing total production well above 5 million.
Forecasted strong production in July, combined with a June days’ supply slightly higher than usual for the month, bodes well for continued good sales results for locally built vehicles.
Another reason to get car stocks under control at this time of year is the sales mix, which will start to favor CUVs, SUVs, large pickups and luxury vehicles.
The prospect of a sharp rebound in second-quarter GDP helped underwrite May’s solid results, and indicates June should post a still-healthy 16 million-plus SAAR, even if some of its thunder was stolen in the...
A red flag to watch for is extended shutdowns beyond traditional summer downtimes, especially at Ford, Fiat-Chrysler and General Motors. Other automakers could add downtime, but most likely would slow production.
With Subaru understocked in the segment, nearly all automakers selling midsize cars, including Ford, GM, Honda, Hyundai, Kia, Mazda, Nissan and Toyota, could withstand some trimming to inventory in the segment.
Large pickups, SUVs and vans combined for a 7.2% gain over year-ago, while share of the three segments increased to 15.8% and bucked seasonal trends by rising from March.
Long-time high production is pushing forecast second-quarter capacity utilization to 101.4% and marking the first time successive quarters have topped 100%.
Leading the big-truck surge will be General Motors, which has full availability of its re-engineered Chevrolet Silverado and GMC Sierra fullsize pickups, plus redesigned SUVs now hitting the market.