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Thumb of Michigan | I'm live close to what use to be the Big 3's foot print area, so I follow the industry a little. It use to be a 60-75 day inventory was considered 'neutral' (IIRC). I was amazed at these numbers (below) to say the least. I've been watching different aspects of the economy for inflation numbers that might not be completely reported by our Gov't.
I'm also a believer of the definition of inflation is too many dollars chasing too few goods. Also being in the foot print of the Big 3, I just read where some dealers are dropping the employee discount programs (and I can see why if you don't have the inventory). Maybe you can call it 'hidden' inflation (full disclosure I'm eligible for the discount thanks to my deceased FIL). As a dealer with limited supply, why sell at discount (employee), when you can get full price? Profit is not a dirty word, if you own a business IMHO.
BTW, a 'healthy' new car market is 16 million plus, looks like much lower this year, time will tell. Copy/paste below.
Inventory
Finally, the punchline: according to Goldman, inventory at US dealers declined sequentially to ~900k from just below 1.0 mn in August 2021, and down from 2.6 mn in September 2020. Industry DOI came in at 22 days compared to 23 days in August 2021 and 48 days in September 2020. Pickup truck DOI was 35 days (vs. 32 in August 2021 and 48 in September 2020), SUV DOI was 20 days (vs. 21 in August 2021 and 47 in September 2020), and car DOI was 16 days (vs. 18 in August 2021 and 51 in September 2020).
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New vehicles
