The U.S. government’s Cars Allowance Rebate System (Cash for Clunkers program) has drained inventory levels for U.S. dealers. According to Automotive News, preliminary inventory reports for Aug. 1 indicate unsold vehicles fell below 2 million units, the lowest figure since at least 1992.
Chrysler Group LLC sold 58,600 units last month, leaving its days supply to 40, down from 71. FoMoCo’s inventory level slid to 48 days from 57 while General Motors Company’s fell to 64 from 82. Toyota Motor Sales USA’s inventory level came in at 29 from 47, while Hyundai/Kia Group was at 43 days, down from 49.
Data for Honda and Nissan were not available.
Together GM, Ford, Chrysler, Toyota and Hyundai cut inventories by 277,200 in the past month. Dealers are now looking to replace models in short supply.
– By: Stephen Calogera