Toyota and Honda made a bit of progress in rebuilding U.S. dealer stocks in October but still have only about half the inventory they did before the March earthquake in Japan.
On Nov. 1, Toyota Motor Sales U.S.A. had 200,100 unsold light vehicles on hand, a gain of 10,700 units from Oct. 1. The days supply, calculated based on last month’s selling rate, remained unchanged at 39.
American Honda Motor Co. added 20,200 units during October, and its supply increased to 37 days from 33.
Combined, the two automakers have added 85,000 units since their summer lows but remain 300,000 units below their March 1 inventory.
And recent flooding in Thailand that has slowed key parts production and forced both Toyota and Honda to curtail production in Japan and North America could further prolong efforts to rebuild inventories.
Industry stocks of unsold vehicles also remain low, although they grew in October. Total inventory increased 145,700 units to 2.2 million on Nov. 1. That’s a 57-day supply, up from 50 on Oct. 1. A 57-day supply is just below the 60- to 65-day range manufacturers generally consider an ideal balance. But Nov. 1 stocks are typically higher -- averaging 71 days over the previous decade.
The ongoing tight inventory continues to reduce the need for marketing incentives.
Still, unsold stock climbed at General Motors and Ford Motor in October. GM started November with an 82-day supply, up from 67 days. And Ford has a 70-day supply, 10 days more than on Oct. 1.
At the other end of the scale, Hyundai-Kia Automotive has a 28-day supply, up from 25 on Oct. 1.