Automotive Dealer Inventories Swell To Almost Record Levels

General Motors' inventory jumped 39 percent from a year ago to almost a million unsold light vehicles on July 1 as U.S. stocks reached near-record levels. Of the industry's total inventory growth of 354,200 units in the past year, GM has added 272,700 units. All other carmakers added 81,500, up 2.6 percent.

GM has said it is deliberately building stock to prepare for several plant shutdowns planned this year for retooling. But a month ago, it expected stocks to begin falling and be down to about a 90-day supply by July 1. Instead, stocks rose to 105 days from 101 on June 1. Still, spokesman Jim Cain said GM is on track to reach its goal of a 70-day supply by year end.

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TheSteve - 7/17/2017 8:30:05 AM

+1 Boost

Yah, did 'ja hear that global cars sales have gone soft in recent months? If you haven't heard, or you're ignoring that and you keep production up at normal levels, of course your inventory swells.

MDarringer - 7/17/2017 9:13:15 AM

+2 Boost

There are dealers who are resisting the cars pushed out by the manufacturers. Manufacturers count as sold the cars they ship to dealers. Dealers are not interested in carrying big inventories of cars that are not selling. GM is notorious for not listening to dealers. A car carrier full of Malibus is not a welcome sight.

PUGPROUD - 7/17/2017 3:45:02 PM

+1 Boost

If true its a good time to buy especially if you don't have to buy.

MDarringer - 7/17/2017 4:19:44 PM

+1 Boost

VERY true. The pickup wars should be especially good for customers.

skytop - 7/19/2017 3:00:38 AM

+1 Boost

I noticed the local dealers have slowly purchase enormous plot of land and filled them up with boring gutless cars by the many hundreds. Now that the new year models are beginning to arrive, dealers are desperate to unload all the 'old' last years cars rusting out of the lots. But the public is now buying! I can just see the 'best offer' sales with no payment till 2018 advertisements flooding the airwaves and newspapers.

The majority of dealerships are owned by huge conglomerates that own large numbers of multi brand stores. With their deep cash reserves, they bought huge inventory of cars at handsome discounts from manufacturers. But now even these large stores are choking on their inventories.