U.S. public auto dealers: Low inventory will linger

Penske Automotive Team Inc. experienced 2,500 new cars, or a nine days’ source, in the U.S. at the close of March, one particular day greater than at the end of December. That in contrast with 14,900 new vehicles, a 37-working day offer, in the U.S. a 12 months earlier.

Some brands were being leaner than many others, Penske leaders mentioned. For instance, the retailer’s U.S. Honda stock dwindled to 216 new vehicles at the finish of March from 3,700 a yr earlier. It experienced just 188 new Toyotas in the U.S. on March 31, in comparison with 2,500 a 12 months before.

CEO Roger Penske claimed previous 7 days that he expects “a slight raise” in new-auto allocations from some automakers in the second quarter, such as a about 10 % strengthen from Mercedes-Benz.

Penske CFO Shelley Hulgrave very last week informed analysts, “We continue to market into our long run new-motor vehicle pipeline to help our clients, optimize inventory transform and reduce our inventory expenses. We hope the recent supply issues, coupled with robust demand from customers, to continue to keep our new-vehicle provide at low but manageable amounts for at least the following nine to 12 months.”

Penske’s utilised-car offer in the U.S. was 34 times on March 31, down from 43 times on Dec. 31.

Group 1 Automotive Inc. CEO Earl Hesterberg instructed analysts last 7 days that customer demand “stays particularly strong exiting the 1st quarter, and we keep on to sell most models practically immediately right after OEM delivery. This dynamic should really carry on all over the year.”

Team 1’s offer of new motor vehicles in the U.S. on March 31 was unchanged from Dec. 31, at 9 times, but it was a sharp fall from 34 times as of March 31, 2021.

The retailer experienced 3,100 new motor vehicles in inventory in the U.S. at the stop of March, stated Daryl Kenningham, president of U.S. functions.

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