Auto industry ATP and GP escalation and overstocks

Several automakers have been pushing ATP and GP to new heights, often by the simple expedient of discontinuing their lower priced models, so consumers have no choice. Questions about affordability have been blithely dismissed with “they can buy used”.

There has been some discussion lately of swelling new car inventories. Some automakers are choking on inventories nearly double the normal 60 days supply.

This article goes into the numbers a bit deeper, looking at what is selling, and what isn’t.

Having asked several car salesmen and visited numerous dealers myself this month, the big takeaway is that markdowns seem to be reserved on the big ticket items that aren’t selling like they used to. Many marquees seem to have a surplus of larger vehicles (mainly SUVs and full-size pickups) that have been loaded up with features and carry sizable sums on the window sticker. All-electric models also appear to be overcapacity on many lots.

But there does not appear to be a similar surplus of affordable models. This is likely the result of many brands deciding to discontinue smaller models in the previous decade. Due to the fact that larger vehicles tend to carry higher margins and superior profitability many automakers simply cut them from their lineup.

This isn’t the first time baldfaced greed on the part of some industry “JCs” has left them with products people don’t want.

Report: Vehicle Supplies Are Climbing Back Up | The Truth About Cars


Don’t consider their cars until they offer something at a reasonable price. There are lots of alternatives–if you are willing to NOT buy.