A backlog of vehicles is accumulating on dealer lots nationwide as, for the first time since June 2020, there are 80 days of new vehicle supply throughout the automotive industry. This follows a weak sales performance in January and the normalization of supply lines.
The days’ supply metric is one of many used by analyst to gauge the health of the automotive market, and measures the number of vehicles on dealer lots and in transit from the factory. Although the figure is complicated by the after effects of the pandemic (which devastated vehicle supply), more days of supply generally correlates with weaker demand for new vehicles.
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