P. M. BRIEFING : U.S. Car Makers Report a Glut

U.S. auto makers are reporting a nine-year high in the inventories of unsold cars as of Dec. 31, with some transplant car makers beginning to feel the effects of the slow sales market, Ward’s Automotive Reports said today.

The nation’s eight U.S. auto makers reported combined inventories equal to 91 days, up from 88 days as of Nov. 30, and 66 days at the end of 1988, Ward’s said. This marks the highest level for late December since the recession of 1981, when stockpiles totaled 107 days, the publication added.

Industry leader General Motors Corp. and third-ranked Chrysler both reported inventories equal to a 100-day supply, while second-ranked Ford Motor Co. checked in with a 96-day level, the statistical newsletter said in its latest weekly report.

Stockpiles of 70 to 75 days are considered normal this time of year.

Transplant producers, Japanese auto makers with U.S. assembly plants, also are feeling inventory pressure as they increase their share of the market, Ward’s said.

Together, Honda, Nissan, Toyota, Mazda and Mitsubishi reported total inventories equal to 124,000 cars as of Dec. 31, up from 44,000 cars a year earlier, Ward’s noted.