Bookmarking
Auto on Info pages
Supporting Auto on Info
Home or
Site Layout or
Site Index or
Quick Jumps or
Search Engine Directory or
The MartAuto News, Analysis and Editorial
U.S.
Consumer Shift to Quality Outpaces Big Three Price and Production Cuts; Big 3
Inventories Get Big, But How Big? Three for One, Anyone?
Auto on Info October 2006
U.S. Consumer Shift to Quality Outpaces Big Three Price and Production Cuts; Big 3 Inventories Get Big, But How Big? Three for One, Anyone?
By James B. Bleeker
Of late, the U.S. Consumer shift to quality and out of Big Three products has accelerated, as the following chart helps depict.
And in a recent survey by J.D. Power & Associates, 61% of the consumers queried indicated that reliability and durability will be the primary factors in their selection of a new vehicle. See "AFP Reports J.D. Powers Says 61% of U.S. Car Buyers Want Reliability and Durability: More Disastrous News for GM?" Auto on Info, October 2006.
This move toward quality has left General Motors Corporation, Ford Motor Company, and the Chrysler Group of DaimlerChrysler AG with large inventories. However, how large is a matter of debate. Here are three sets of numbers.
Autodata's and AutoNation's Number of Selling Days of Inventory for Chrysler, Ford, General Motors, and Toyota as of the End of September 2006 and Edmunds' Average Number of Days That Cars Sold in September 2006 Had Sat on Dealership Lots Manufacturer Autodata Corporation's Numbers Edmunds.com's Numbers AutoNation, Inc.'s Numbers Chrysler Group 82 101 128 General Motors Corporation 76 88 94 Ford Motor Company 75 84 105 Toyota Motor Corporation 29 26 34 Autodata Corporation says its numbers are based on data provided by the manufacturer and may not include vehicles stashed on company lots. (Ford says that the numbers it provides include stashed vehicles; Chrysler says that its numbers omitted 50,000 stashed vehicles.) They also use fleet sales to compute the number of selling days of inventory. The Wall Street Journal quotes the president of Autodata as saying that the current method of calculation "doesn't truly reflect what supply is."
AutoNation, Inc., the nation's largest dealership network, estimates its numbers from experience.
The following charts help depict the respective inventory measures.
The Big Three, for whatever reason, try to have their dealerships hold 60 days of inventory; Toyota tries to have 30 days of inventory available to its dealerships.
Until recently, the U.S. consumer turn toward quality and resulting Big Three inventory glut had presented little concern to the more solvent Big Three dealerships. However, now that interest rates have risen, big inventories are a burden. AutoNation states that it will accept 30% fewer vehicles from the Big Three in the 4th quarter of 2006.
For a historical comparison, this is how inventories stood at the end of October 2004, per the Financial Times.
See "December Big Three Fire Sale Viewed as Likely," Auto on Info, November 2004.
Such excess inventories prompted a fire sale in late 2004 and early 2005. During this or other fire sale of recent vintage, some Big Three dealerships offered a 2-for-1 sale (the second vehicle was a smaller vehicle). With some luck, the consumer disposed to pay money for a Big Three vehicle might, if enough other similarly disposed consumers hold off on purchases, get even a sweeter deal, say 3 for 1.
Sources: "Car Dealer Stocks May Signal Pain for the Big Three," Neal E. Boudette, The Wall Street Journal, October 25, 2006, pp. A2, A12, "AutoNation to Cut Detroit Orders," Neal E. Boudette, The Wall Street Journal, October 27, 2006, p. A3,
Links to Amazon.com
Musical Instruments Karl Willhelm violins Schiller cellos To view more string instruments, icons, and search phrases, click here. Wallets for Men and Women Robe di Firenze wallets R.G. House of Florence wallets Rolf’s wallets The Sak wallets Columbia Sportswear wallets To view more wallets, icons, and search phrases, click here. Handbags Prada handbags Caterina Lucchi handbags Tocca handbags Fossil handbags Ellington handbags To view more fine handbags, icons, and search phrases, click here. Toiletry Bags Ralph Lauren toiletry bags Bosca toiletry bags Eagle Creek toiletry bags To view more toiletry bags, icons, and search phrases, click here. Fine Women's Perfumes L'air du Temps by Nina Ricci for women Must II de Cartier by Cartier for women Allure by Chanel for women To view more fine women's perfumes, icons, and search phrases, click here. 22-Inch Bags Hartmann 22-inch Luxe mobile travelers Victorinox expandable wheeled 22-inch bags Samsonite 22-inch uprights To view more 22-inch bags, icons, and search phrases, click here. Samsonite Bags Samsonite Oyster FLites To view more bags and series by Samsonite, icons, and search phrases, click here. Business Totes, Business Briefs, and Briefcases for Men and Women L.A.P.A. briefcases Hartmann briefcases High Sierra briefcases To view more business totes, business briefs, and briefcases, icons, and search phrases, click here. Tell your friends, colleagues, and coworkers, "I bought it at Amazon.com via Auto on Info." Internet's provisioner of detailed auto quality news and information since 2001
Automotive News Menu Pages Auto Manufacturers: Toyota - Honda - Subaru - Nissan - Ford - Chrysler - General Motors - Volkswagen Topics: Reviews - Recalls - Safety Investigations - Safety Test Results - Automotive Excellence - Automotive Dishonor, Discredit, or Demerit - Lawsuits - Automotive Finances - Car and Truck Sales and Market Shares - Auto on Info
Links to Amazon.com
Selections from The Mart by Auto on Info, A James B. Bleeker Website
Ideas for Literature Gifts History Lit Kievan Russia (1973) by George Vernadsky and from Yale University Press European Alliances and Alignments, 1871-1890 (1977) by William Leonard Langer The Maritime History of Massachusetts, 1783-1860 (1979) by Samuel Eliot Morison The Making of Modern Japan (2000) by Marius B. Jansen Natasha's Dance: A Cultural History of Russia (2003) by Orlando Figes Guns, Germs, and Steel: The Fates of Human Societies, New Edition (2005) by Jared Diamond Collapse: How Societies Choose to Fail or Succeed (2004) by Jared Diamond The Peloponnesian War (2004) by Donald Kagan Washington's Crossing (2004) by David Hackett Fischer and from Oxford University Press Paul Revere's Ride (1995) by David Hackett Fischer and from Oxford University Press Albion's Seed : Four British Folkways in America (2005) by David Hackett Fischer and from Oxford University Press The Scientists: A History of Science Told Through the Lives of Its Greatest Inventors (2004) by John Gribbin The Little Ice Age: How Climate Made History, 1300-1850 (2001) by Brian M. Fagan The World Is Flat: A Brief History of the Twenty-first Century (2005) by Thomas L. Friedman For more historical literature, click here. For a broader selection of fine literature, click here. Biographies Beethoven: Biography of a Genius (1972) by George Richard Marek Genius: The Life and Science of Richard Feynman (1993) by James Gleick Alexander Hamilton (2004) by Ron Chernow John Adams (2001) by David McCullough Benjamin Franklin (2003) by Edmund S. Morgan Team of Rivals: The Political Genius of Abraham Lincoln (2005) by Doris Kearns Goodwin Theodore Roosevelt: A Strenuous Life (2001) by Kathleen Dalton For more biographies, click here. For a broader selection of fine literature, click here. Highly Rated Books on Home Improvement Home Improvement 1-2-3: Expert Advice from The Home Depot (Home Depot ... 1-2-3) (Hardcover) by Home Depot Books, John Holms The Complete Guide to Home Plumbing: Newly Expanded 3rd Edition (Paperback) by Creative Publishing and the Staff of Black & Decker The Complete Guide to Home Wiring - 3rd Edition: Includes Information on Home Electronics & Wireless Technology (Paperback) by the Staff of Black & Decker Decks 1-2-3 (Hardcover) by Home Depot Books, Catherine Staub Working with Tile (Taunton's Build Like a Pro) (Paperback) by Tom Meehan, Lane Meehan The New Smart Approach to Kitchen Design (New Smart Approach) (Paperback) by Susan Maney Lovett The New Smart Approach to Bath Design (New Smart Approach) (Paperback) by Susan Maney Lovett For more highly rated home improvement books, click here. For a broader selection of fine literature, click here.
Visitor support makes this site possible. Please return often to do your holiday shopping via Auto on Info. Thank you.
Search Engine Directory This table is provided primarily to give the visitor quick access to several of the major search engines. For descriptions, strengths, weaknesses, comments, and other names and formats by which the search engines are known, go to Search Engine Directory Page. Major Search Engines Yahoo! Teoma Wisenut DMOZ Gigablast Metasearch Engine
Auto on Info Standings for Selected Search Phrases on Auto News
Site Rank in Results for Search Phrase Car Quality News Site Rank in Results for Search Phrase Auto Quality News Site Rank in Results for Search Phrase Auto News First by Yahoo! Search from 5,230,000 results First by Yahoo! Search from 3,510,000 results Thirty-ninth by Yahoo! Search from 37,600,000 results First by MSN Search from 1,110,112 results First by MSN Search from 716,283 results Fifteenth by MSN Search from 7,682,302 results Fifteenth by Google from 3,730,000 results Tenth by Google from 2,400,000 results Eightieth by Google from 7,450,000 results Standings are as of 14/03/2004.
Links to Amazon.com
Selections from The Mart by Auto on Info, A James B. Bleeker Website
Additional Ideas for Holiday, Anniversary, and Special Occasion Gifts Solis Espresso Machines KitchenAid Stand Mixers Cuisinart Food Processors Zojirushi Grills Cuisinart Dessert Makers Le Creuset Cookware Sets West Bend Fondue Sets To view more espresso machines and coffee makers, icons, and search phrases, click here. To view more stand mixers, food processors, grills, frozen dessert makers, fondue sets, and other small appliances, icons, and search phrases, click here. To view more cookware sets, icons, and search phrases, click here. To view a more comprehensive selection of kitchen items, click here. Visitor support makes this site possible. Please return often to do your shopping at Amazon.com. Thank you.
