As per previous GM Authority coverage, Chevy and GMC inventory levels in December 2022 rose from November 2022 levels. Now, Buick is following suit, and has climbed to more than a 140 days supply in December 2022.
This means that Buick dealers currently have an ample level of inventory to meet consumer demand. On a days supply basis, Buick was the GM brand with the highest level of dealer inventory as of November 2022, as well as the highest of all brands that compete in the U.S. market. Notably, this was also the case in November 2022.
“New-vehicle inventory climbed through December, nearing what used to be considered ‘normal’ levels in the pre-pandemic era,” Cox Automotive senior economist Charlie Chesbrough was quoted as saying in a recent report. “Days of supply at the end of December increased due to production and supply improvements. But sales barely budged.”
As a reminder, a 60 days supply was considered optimal in the U.S. auto industry prior to the COVID-19 pandemic. More specifically, a 60-day inventory level means that dealerships have enough inventory on-site to sustain current sales volume for roughly the next 60 days.
According to Cox Automotive, inventory levels across the automotive landscape are on the rise and are currently reaching their highest levels since March 2021, as supply levels rose from 1.62 million vehicles in November 2022 to 1.80 million vehicles in December 2022. In fact, December 2022 inventory levels are up 65 percent from December 2021 levels, yet still remain at historic lows. This presents compelling arguments for automakers, including GM, to begin offering more incentives to improve sales figures.
“While new-vehicle supply rose 37 percent since September and is 66 percent above a year ago, the sales pace at the end of December had improved by a scant 2 percent,” said Chesbrough. “If this trend continues – and it seems likely to do so – automakers will be under heavy pressure to move the metal with higher incentives. This will be the story to watch for in the first part of 2023 – automakers returning to discounting.”
It’s worth noting that Buick has a few new products set to launch in the 2023 calendar year, including:
All of these models will introduce an all-new generation or a mid-cycle refresh, thereby likely resulting in higher consumer interest and associated demand.