Bloated auto inventories
Share Now on:
Bloated auto inventories
TEXT OF STORY
SCOTT JAGOW: U.S. carmakers turn in their October sales numbers today and they’re supposed to be higher than a year ago. Still, a lot of 2006 models are gathering dust at dealerships. Sarah Gardner reports.
SARAH GARDNER: Consumers steered clear of trucks and SUV’s this year, worried about high gas prices. Now Detroit is stuck with hundreds of thousands of them.
Some may end up in rental car fleets, but analyst Jesse Toprak at Edmunds.com says automakers will do what it takes to sell the resta€¦.
JESSE TOPRAK: “Some vehicles have $7,000, $8,000 in incentives. In other words, you can go into a dealer lot and look at a $35,000 large SUV and get it for somewhere around $25,000.”
SUVs aren’t dead, but Jack Nerad at Kelley Blue Book says they won’t dominate sales like they have in the past.
JACK NERAD: “Now there are crossover vehicles built on car chasses that are easier to drive, a little better fuel economy and some people are opting for those choices.”
Right now Chrysler is in the biggest fix. As of late September it had over a half million unsold vehicles.
I’m Sarah Gardner for Marketplace.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
