This represents a slight drop in inventory since January 2023, when Cadillac’s inventory was running slightly above 60 days supply.
Cadillac’s current supply means its dealerships have sufficient on-site inventory levels to sustain current sales volume for a little less than the next 60 days. Many automotive sales organizations, such as the National Automotive Dealers Association (NADA), consider 60 days supply as an optimum inventory level.
Zooming out to the big picture of the entire market, U.S. dealerships were running an average 56 days supply for February. This is down one day from the 57 days of inventory the typical dealer had in January 2023. About 1.8 million vehicles were in U.S. inventory overall.
Supply is up 68 percent year over year from around a million vehicles in inventory during February 2022. New vehicle sales are also up 9 percent from a year ago, though exceptionally robust fleet sales account for part of this strength.
A senior economist at Cox Automotive, Charlie Chesbrough, said “new-vehicle sales are showing surprising strength, considering the relentless talk of a recession, growing economic headwinds, and continued inflation.” Despite production soaring as semiconductor chip shortages end, sales are helping hold inventory below the 115 days supply in February 2019, before the COVID-19 pandemic.
Cadillac’s inventory level is therefore basically in line with the overall U.S. automobile market. Currently, affordable vehicles are selling much better than their pricier counterparts. Vehicles under $20,000 are running at only 20 days supply. Those from the next research price category up, $20,000 to $40,000, are maintaining 40 to 44 days supply, 12 to 16 days less than the monthly average.
Higher priced vehicles such as sports cars and full-size pickup trucks are seeing unsold inventory accumulate. Full-size pickups currently have 79 days supply on average as their higher prices restrict sales. Incentives still haven’t risen enough to cut into accumulating backlog in these categories, with Cox economist Chesbrough remarking, “it feels like automakers are waiting for the other guy to blink first.”
Luxury vehicles, Cadillac’s segment, registered an average 60 days supply for February 2023, making GM’s luxury brand a typical sector performer for this month. Inventory of new luxury vehicles slipped slightly lower from the average 61 days supply present in January.