U.S. December Inventory, Days’ Supply Fall

One month after posting a modest gain, U.S. new light-vehicle inventory and days’ supply fell again in December as dealers closed 2011 with relatively robust sales.

In all, there were 2,352,202 cars and light trucks on dealer lots at the end of last month, down 2.8% from 2,418,889 in November and a mere 0.8% above the 2,334,471 posted in 2010.

A relatively robust selling rate helped trim both unit stock and days’ supply, the latter slipping to a subpar 51 at the end of December from a more normal 61 at the close of November. Dealers closed out 2010 with a 55 days’ supply on Dec. 31.

With few exceptions, virtually all brands ended December with a lower LV days’ supply than in November and many falling below the prior-year tally.

The leading exception was financially troubled Saab, where the days’ supply climbed to 221 from 172 despite a 9.5% decline in unit stock as the brand marches toward the dustbin of history.

Others with modest days’ supply gains included Mazda, Mercedes, Porsche and Volvo.

With unit stock falling 4.5% for the month, the Detroit Three posted a combined 64 days’ supply in December, down from prior-month’s 79, but still above the weak 60 in like-2010.

Asian-brand inventory and days’ supply also declined in December, with the latter dipping to a weak 40 days’ from November’s 46 and prior-year’s 52.

Subaru’s 18 days’ supply, down from 24 the prior month and 34 year-ago, was the lowest in the industry despite a 33.5% increase in unit-stock arriving late in the month as the auto maker works to build inventory of its all-new ’12 Impreza lineup.

Among market segments, cross-utility vehicles were in shortest supply, posting a mere 42 days’ inventory in December compared with 50 the previous month and 44 year-ago.

SUVs posted the largest decline, 14.5%, in unit stock for December, with days’ supply dropping to 44 from 57 in November and 55 a year earlier.

 Only large cars, 69, and pickups, 63, had days’ supply readings in the 60-70 range, considered normal.

[email protected]