Categories: Automobile

U.S. public auto sellers: Low stock will linger

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Penske Automotive Group Inc. had 2,500 new automobiles, or a 9 days’ provide, within the U.S. on the finish of March, in the future higher than on the finish of December. That in contrast with 14,900 new automobiles, a 37-day provide, within the U.S. a yr earlier.

Some manufacturers had been leaner than others, Penske leaders mentioned. As an illustration, the retailer’s U.S. Honda stock dwindled to 216 new automobiles on the finish of March from 3,700 a yr earlier. It had simply 188 new Toyotas within the U.S. on March 31, in contrast with 2,500 a yr earlier.

CEO Roger Penske mentioned final week that he expects “a slight improve” in new-vehicle allocations from some automakers within the second quarter, together with a roughly 10 % enhance from Mercedes-Benz.

Penske CFO Shelley Hulgrave final week informed analysts, “We proceed to promote into our future new-vehicle pipeline to help our clients, maximize stock flip and reduce our stock prices. We count on the present provide challenges, coupled with sturdy demand, to maintain our new-vehicle provide at low however manageable ranges for at the very least the following 9 to 12 months.”

Penske’s used-vehicle provide within the U.S. was 34 days on March 31, down from 43 days on Dec. 31.

Group 1 Automotive Inc. CEO Earl Hesterberg informed analysts final week that client demand “stays extraordinarily sturdy exiting the primary quarter, and we proceed to promote most items virtually instantly after OEM supply. This dynamic ought to proceed all year long.”

Group 1’s provide of latest automobiles within the U.S. on March 31 was unchanged from Dec. 31, at 9 days, however it was a pointy drop from 34 days as of March 31, 2021.

The retailer had 3,100 new automobiles in inventory within the U.S. on the finish of March, mentioned Daryl Kenningham, president of U.S. operations.

The retailer’s U.S. used-vehicle provide stood at 28 days as of March 31, down from 36 days on Dec. 31.

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