November U.S. auto sales are out tomorrow morning. Get ready for hype of how many red 2-door V-6’s this automaker or that moved on Black Friday. It’s not relevant. I really don’t care whether the month tracked at 15.5 or 16.1 million SAAR. We are closing on on the shift from a rapidly expanding market to a market where costs will automakers will have to control costs and command price.
Here are three things to look at as the year ends. More important than overall volume.
- Inventories have crept up. If December is a blow-out, +16 million, then this may adjust. If it paces in mid 15’s. Say 15.5-15.7, then I expect continued inventory build to be a worry.
- Sub-prime lending is getting to aggressive. If macro indicators are improving, Continue reading