Ford inventory hits record as cars pile up and sales decline
Unfortunately, Ford is facing a concerning situation in America as its inventory of new cars has surged to a four-year high. This marks the second-highest point in inventory levels in the past 15 years. Amidst this, another automaker is experiencing even more challenges.
Hey there, folks! Welcome back to the channel. Thanks for joining me. The rise in inventory across the US coincides with a troubling trend of increasing loan defaults, particularly worrisome as nearly half of Ford's debt is automotive-related. While considered manageable in prosperous times, defaults on these loans pose significant risks.
According to Cox Automotive, new vehicle inventory in the United States soared in March, reaching its highest level since 2020. Cox reported an estimated inventory of nearly 3 million cars, representing a 74-day supply, a significant uptick from the previous year's 1.9 million. This staggering 35% year-over-year increase signals a ballooning inventory.
Inventory levels vary depending on the price range, with vehicles priced between $30,000 and $40,000 experiencing the least inventory at 59 days' supply. Surprisingly, vehicles under $20,000 had a longer supply of 66 days. However, the real issue lies in vehicles priced between $60,000 and $80,000, with a staggering 98-day supply, indicating potential challenges for automakers in this segment.
Among the major automakers in America, Ford stands out with more than a two-month supply of vehicles, the only one reporting an increase in inventory from the previous month, as noted by the Automotive News Research and Data Center.
Ford's woes extend beyond inventory challenges. Sales have dipped both in the US and China this year, prompting pauses in EV sales and drastic price cuts, with discounts up to $6,000. Moreover, Ford's light truck supply, traditionally its stronghold, is struggling, raising concerns about its financial health.
Looking ahead, Ford ..
