Guess Which Automaker Has "Absurdly High Inventory Levels" 

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by Tyler Durden
Monday, Nov 27, 2023 - 08:45 PM

"CarDealershipGuy," on social media platform X, posted Cox Automotive data that shows "Dodge, Chrysler & Ram have absurdly high inventory levels right now..." 

Dodge leads all brands with a vehicle supply for 186 days, the highest in the industry. Following Dodge, Chrysler has a supply for 135 days, then Ram with 129 days, Jeep with 123 days, and Lincoln with a supply lasting 120 days.

The increasing vehicle inventory at Dodge may be attributed to a shift in consumer preferences, or the impact of higher interest rates and elevated prices exacerbating the affordability crisis.

One X user commenting on CarDealershipGuy's post said, "Looks like the UAW strike arrived at a serendipitous confluence... almost as though it was a concerted effort. (just imagine how much worse inventory levels would be today if the UAW strike hadn't idled 44 GM, Stellantis, and Ford plants in the U.S. in September and October)." 

Another X user said, "Tell me how excited Stellantis is to have the four largest brands with too much inventory. And now a new massive UAW contract burden. Look out below…" 

This person noted, "Importantly, this data is as of Nov 6, and the denominator for the calculation is sales in the last 30 days, meaning inventory on Nov 6 divided by mostly Oct sales. We know from earnings calls that things slowed down sharply in Nov, so next report's days of supply will be higher." 

Meanwhile, used wholesale vehicle prices have tumbled into a bear market

Maybe Dodge vehicles are just garbage and reflect shifting consumer tastes. Or interest rates have crushed demand. Either way, supply building at some of the largest brands in the industry is an ominous sign.