With the ongoing recovery from the slump that COVID-19 inflicted upon the U.S. economy, production output of new vehicles has been struggling to meet consumer demand, leading to record-low inventories and little to no discounts. However, this glum outlook is beginning to change, as Cadillac new vehicle inventory has improved to roughly a 65-day supply of the end of November 2022.
This means that Cadillac dealers currently have adequate inventory to meet consumer needs. For reference, a 60-day supply was considered optimal in the U.S. auto industry prior to the COVID-19 pandemic. More specifically, a 60 days inventory level means that dealerships have enough inventory on-site to sustain current sales volume for roughly the next 60 days.
According to a report from Cox Automotive, industry-wide inventory is on the rise, and is currently reaching its highest levels since May 2021. In fact, the supply of new vehicles was up 81 percent in November 2022 when compared to the same timeframe last year. And while inventory is on an upward trajectory, it still remains historically low, as pre-pandemic records reflect an 86 days supply as the norm. This supply level provides a good balance of consumer choice while keeping inventory costs low.
“Timing is everything,” Cox Automotive’s senior economist Charlie Chesbrough said. “Production is finally ramping up after being stymied by the chip shortage just as demand started to waiver and vehicle sales slowed down.”
Cadillac is currently in a good position to capitalize on this evolving market, with a comprehensive lineup of new products in the pipeline, including:
- Refreshed 2024 Cadillac Escalade
- Refreshed 2024 Cadillac XT4
- Refreshed 2024 Cadillac CT4
- Refreshed 2024 Cadillac CT5
- 2024 Cadillac Lyriq (expanded lineup to include new Sport trim level)