New-vehicle inventory witnessed a significant uptick in October, defying
a six-week worker strike in Detroit, according to data from Cox
Automotive. Inventory soared to 2.4 million units, marking a remarkable
62% year-over-year increase. The days’ supply at the end of the month
reached 67, up from the previous month's 60, and a 41% YoY surge. Cox
noted that the last time days’ supply measured in the 60s, considered
industry-normal, was in March 2021.
Cox Automotive Senior Economist,
Charlie Chesbrough, noted, “Days of supply are creeping higher as the
sales pace is slowing at the start of this year’s final quarter." He
added that economic pressures, such as high interest rates and elevated
vehicle prices, are dampening sales.
“As we enter the holiday sales
season, greater discounting from the automakers seems likely. Otherwise,
the days of supply will rise even further.”
Despite being a target
of the strikes, Stellantis, the maker of Jeep, had the largest
inventory, with Dodge, Chrysler, Ram, and Jeep all having more than 100
days’ supply.
