(Bobit) — Automotive News analysts say the number of unsold new cars and light trucks at U.S. dealerships reached nearly 3.8 million at the start of August, a 71-day supply. The announcement follows a July sales report in which total deliveries improved by 1.3% but the year-end forecast fell nearly 4% from June.
The figure, which is based on the prior month’s sales reports and estimated sales, reached its highest late-summer mark since 1992, when the nation was more than a year into a post-recession economic recovery and months away from a presidential election.
Unsold inventory on franchise dealer lots included 2,859,600 light trucks (a 73-day supply) and 938,800 cars (64). The number of unsold new cars fell below 1 million for the first time in nearly eight years.
Writing for AN, Larry P. Vellequette noted the inflated supply reflects a weaker selling rate and is particularly worrisome in what is typically a down month.
“The beginning of August is historically one of the leanest inventory times of the year in the U.S., largely because domestic assembly plants traditionally use June and July to retool for model changeovers,” Vellequette wrote.
To read the full Automotive News report, click here.