Click to Enlarge.
New light-vehicle sales in August continued to decline with diminishing inventory on dealer lots. Sales in August totaled a SAAR of 13.1 million units, the lowest level since June 2020’s 13 million. August’s sales rate reduced the year-to-date SAAR to 16.1 million units from 16.5 million last month. August began with record-low inventory levels, and by month’s end total inventory had fallen an additional 5.2% for a new record low of 1.06 million units.
“Given the continuing announcements of plant shutdowns throughout the industry, sales for the rest of the year will likely be limited by these inventory constraints,” said Patrick Manzi, NADA Chief Economist. (Read AutoInformed.com on August Vehicle Sales to Drop as Prices Hit Record High; US Auto Sales Forecast Down Again in August)
Click to Enlarge.
“The month of August is historically a peak selling month as manufacturers launch promotional events to clear inventories of outgoing model-year vehicles and begin sales of the new model year. This year, however, the industry has insufficient inventory at dealerships to meet strong consumer demand. The consequence is that the retail sales pace is depressed, but transaction prices are elevated,” said Thomas King, president of the data and analytics division at J.D. Power.
Click to Enlarge.
Vehicle production is not expected to rise this year. According to IHS Markit, the North American light-vehicle production forecast has been cut by several hundred thousand units to 13.9 million vehicles. “It’s still unclear exactly when manufacturers will be able to produce enough vehicles to meet current market demand and begin to build back inventory levels from current historical lows. Unfortunately, given the recent production-cut announcements for September and other ongoing supply chain disruptions, we expect little change to inventory levels next month,” said Manzi of NADA.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
US August Light Vehicle Sales Continue Shrinking Trend
Click to Enlarge.
New light-vehicle sales in August continued to decline with diminishing inventory on dealer lots. Sales in August totaled a SAAR of 13.1 million units, the lowest level since June 2020’s 13 million. August’s sales rate reduced the year-to-date SAAR to 16.1 million units from 16.5 million last month. August began with record-low inventory levels, and by month’s end total inventory had fallen an additional 5.2% for a new record low of 1.06 million units.
“Given the continuing announcements of plant shutdowns throughout the industry, sales for the rest of the year will likely be limited by these inventory constraints,” said Patrick Manzi, NADA Chief Economist. (Read AutoInformed.com on August Vehicle Sales to Drop as Prices Hit Record High; US Auto Sales Forecast Down Again in August)
Click to Enlarge.
“The month of August is historically a peak selling month as manufacturers launch promotional events to clear inventories of outgoing model-year vehicles and begin sales of the new model year. This year, however, the industry has insufficient inventory at dealerships to meet strong consumer demand. The consequence is that the retail sales pace is depressed, but transaction prices are elevated,” said Thomas King, president of the data and analytics division at J.D. Power.
Click to Enlarge.
Vehicle production is not expected to rise this year. According to IHS Markit, the North American light-vehicle production forecast has been cut by several hundred thousand units to 13.9 million vehicles. “It’s still unclear exactly when manufacturers will be able to produce enough vehicles to meet current market demand and begin to build back inventory levels from current historical lows. Unfortunately, given the recent production-cut announcements for September and other ongoing supply chain disruptions, we expect little change to inventory levels next month,” said Manzi of NADA.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.