While GM’s more mainstream brands – including Chevy, GMC and Buick – saw inventory levels rise from November 2022 to December 2022, Cadillac inventory fell slightly to more than 60 days supply in December 2022 as compared to more than 65 days supply in November 2022.
This means that Cadillac dealers currently have adequate inventory to meet customer demand. For reference, 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.
“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.”
According to Cox Automotive, industry-wide inventory is on the rise and is currently reaching its 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 Cadillac has a few products scheduled for debut in the 2023 calendar year, including:
- 2024 Cadillac Lyriq Sport
- Refreshed 2024 Cadillac XT4
- Refreshed 2024 Cadillac CT4
- Refreshed 2024 Cadillac CT5
- Refreshed 2024 Cadillac Escalade