Tight inventories set the stage for U.S. auto industry rebound

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U.S. automakers are facing a problem most forecasters and industry executives did not expect when the pandemic slammed the economy this spring: Strong demand and lean inventories at dealerships.

FILE PHOTO: 2020 Ford Explorer cars are seen at Ford's Chicago Assembly Plant in Chicago, Illinois, U.S. June 24, 2019. REUTERS/Kamil Krzaczynski//File Photo

Even so, North American production is about 2 million vehicles behind last year, said Charlie Chesbrough, senior economist at research agency Cox Auto. “The consumer demand after the shutdown ended was very strong and it continues to outpace the ability of the industry to stock the shelves,” he said.

Dean’s original first choice was a Mitsubishi Pajero, another sport utility vehicle with a more affordable price tag. A $3,000 discount, however, lured him to stretch his budget by $12,500 and buy the Prado, a rare diesel variant that some dealers in the United States still import and sell.

 

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