U.S. Dealers Still Inventory-Starved

Hopes that U.S. dealers would replenish their barren lots with new light vehicles were not realized in July, as the month’s count was 194,000-plus units short of June’s tally.

Related document: Ward’s U.S. Light Vehicle Inventory by Group July 2011

As of July 31, the days’ supply barometer slipped to 49 from prior-month’s 54 days and year-ago’s 52, well below the 60-70 days’ supply long considered ideal.

Hot-selling Ford Focus among lowest days’ supply.

Assembly-plant vacation shutdowns get much of the blame for halting the fledgling inventory rebound seen at the end of June, along with the continued struggle to restore output from Japan-based auto makers and suppliers still reeling from the earthquake and tsunami that struck the island nation March 11.

The Detroit Three netted a surprisingly robust 63 days’ supply of LVs, down modestly from 66 in June, despite a month-over-month 8.9% decline in unit-stock to 1,215,179. Still, some models such as the hot-selling Ford Focus, with its 18-day supply, remained scarce.

Inventories of Asia-based brands dipped 10.9% to 601,122 units, slashing their days’ supply to 34 from prior-month’s 42. Subaru’s 19-day count was the lowest of the group, followed by Hyundai and Kia, each with 21 days of inventory.

Industry-wide, car stocks fell to 39 days at the end of July, from prior-month’s 42. The shortage was most acuted in among small cars, which ended July with a 29-day supply – lowest of any LV segment, according to Ward’s data.

Light trucks also dropped to a less-than-ideal 57 day-supply in June on an 8.7% decline to 1,219,402 units.

Cross/utility vehicles had the lowest days’ supply, 40, of any light-truck segment. Pickups, with 85, had the highest reading.

Large-pickup inventory remained well above normal at 91 days, although that was down from a whopping 100 days a month earlier.

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