Business Inventories-To-Sales Ratio Jumps To Highest Since Nov '16 As Auto Inventories Spike

Tyler Durden's picture

Once again motor vehicles dominated the rise in inventories in June (up 0.7% MoM) as retail inventories rose 0.6% MoM but sales lagged at just 0.3%. This mismatch pushed the aggregate inventory-to-sales ratio back to its highest since Nov 2016 at 1.38 months.


But it's autos that remain near ex-crisis highs in inventories...

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dogismycopilot's picture

I do like the look of those new Cadillac Escalades Extended SUVs.

But who in their right fucking mind would pay almost $100K for a badged up Tahoe that is going to lose half its value in 2 years?

shizzledizzle's picture

People who are so under water they know they are gonna drown and want that last hurrah.

TheDude1224's picture

I'll take the Escalade for $100,000 now before that becomes the price for a loaf of bread.

ejmoosa's picture

Drove past a Kia plant in Georgia this last weekend.  I was astonished at all the new vehicles sitting outside the plant.

shizzledizzle's picture

Channels are stuffed to capacity, start stuffing elsewhere.

CJgipper's picture

I don't think this is accurate, or does it not include used cars?  lots are literally overflowing with late model used cars.  I don't even remember this many late model used cares on lots in 2009.

FlameSky's picture

Late model used inventory is ballooning due to huge influx of off-lease returns... will continue to increase over next several years.


GunnerySgtHartman's picture

Come on, GM! Ratchet up those incentives even more!  We know you can do it - you did it once before and it helped bankrupt you!  It's only money!  LMAO

medium giraffe's picture

Tesla is so fucked.  I can't stop laughing.

GunnerySgtHartman's picture

I'm looking forward to the meltdown the greenie-weenies will have when Tesla's auto operations file bankruptcy.  Popcorn for everyone!

Decoy 409's picture

OPPS! Shhhhhhh........

Remember the good old days when you could simply hide the aluminum in Detroit warehouses and keep the oil sitting in the tanker in the water while simply waiting for the pump prices and meters to go higher and higher as you milked them for all they had. Don't lower the price simply create excessive inventory call it gain until that is.

Just keep paying them and we will reimburse you when things get going again. Oh and keep those layoffs and let go's down to show improvement. Of course that was a year ago already when the ups got the feed and directions. Smell those credit chips burning away (or money as some call it).



I am Jobe's picture

Texas dealers parking lots are full and lots of incetives advertised. There are overstuffed cars for sale and taco stands. TX is not all that great all poor paying jobs. 

Decoy 409's picture

Did anybody else run the Google map to SEE the pile ups? Yep keep them working and producing and storing the overcreated (somewhere).


Where the World's Unsold Cars Go To Die | Zero Hedge
goldoverbtc's picture

Well Inventories still help out the GDP # so people aren't too concerned about this in Washington.