GM's inventory has officially hit a 10-year high. 980,454 units in stock (a 105-day supply) as of June 30, the most since June 2007.
— Nick Bunkley (@nickbunkley) July 3, 2017
It seems that “Big 3” auto sales for the month of June managed to hit a sweet spot whereby they were down just enough year-over-year to spark a massive equity buying binge on a shortened holiday trading session. GM, Ford and Chrysler posted YoY sales declines of 6% on average, which was less negative than expected, so positive (negative x negative = positive…it’s just math).
Meanwhile, in another positive sign for the auto industry, Ford, which previously described the current sales environment as a ‘plateau’, confirmed on their sales call that the “industry peaked” last year and was unlikely to top 2016 sales figures at any point in the near future.
This post was published at Zero Hedge on Jul 3, 2017.
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