Landed, or on-the-ground, inventory of the 2021 Chevy Blazer crossover at U.S. Chevrolet dealers has dropped to just 12 days as of the beginning of July 2021, GM Authority has learned from sources familiar with the matter.
This is part of a generally downward trend which has been happening for at least the past nine months. In September of 2020, GM Authority exclusively reported that supply was running at 28 days as of the beginning of that month. The figure was the same in January of 2021.
The optimal figure for the U.S. auto industry is considered to be 60 days. Naturally, there is an upside to vehicles finding customers more quickly than that, but it also implies excess demand, or insufficient supply, or a combination of the two. This in turn means that there is less choice for customers shopping at their local Chevy dealer or even higher prices as a result of lower incentives or a dealer that’s less wiling to negotiate. These circumstances could lead customers to buy a different vehicle from another brand/manufacturer.
Sales Results - Q2 2021 - USA - Chevrolet
|MODEL||Q2 2021 / Q2 2020||Q2 2021||Q2 2020||YTD 2021 / YTD 2020||YTD 2021||YTD 2020|
|LOW CAB FORWARD||-1.43%||1,515||1,537||+2.83%||2,472||2,404|
Blazer sales in the United States certainly appear to have been impacted by the inventory issue, which we described as “alarmingly low” back when it was running at 28 days. The Chevy Blazer is in the minority of Chevrolet models which sold in lower numbers in the first half of 2021 (39,855 units) than during the same period of 2020 (41,870 units), even though it is in great demand.
The reason for the decline in sales volume is that the supply rate is unquestionably low. The crossover has been significantly affected by the global semiconductor shortage, which has led to production cuts at the GM Ramos Arizpe plant in Mexico where Blazers are assembled for the U.S., Canada, Mexico, Colombia and Middle East markets.
Production cuts naturally lead to low supply, leading in this case to the peculiar situation where Blazers are finding customers within an average of two weeks of arriving at a dealer, while sales volume falls.