Automakers See a Pileup in Inventory
In a conundrum of sorts, the US automakers are seeing a pileup in passenger car inventory even as new vehicles are being sold at a brisk pace. General Motors (NYSE:GM) was carrying five months stocks of Malibu sedans and Camaro sports cars as at end November. Ford Motor Company (NYSE:F) was nursing four months inventory of its Fiesta subcompact cars. Chrysler Group LLC has built up an inventory of nearly six-month sales of its 2013 Dodge Dart. A part of the reason could lie at the door of discounting offered by Japanese rivals such as Toyota (NYSE:TM) and Honda Motor (NYSE:HMC), who are seeking to recoup sales after the earthquake last year disrupted production.The heavy rebates and incentives offered by the Japanese have caught Detroit off-guard, leading them to offer discounts as well.
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