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Discussion Starter #1
Honda Accord and Nissan both have daily inventories at over 60k units

With the ramp up of Flat Rock, the Ford Fusion daily inventory continues to climb to better compete. As of today Fusion inventory is up to 43k units on sales of 21k, and current #1 selling Camry is at 47k on sales of 29k. Which is about normal for Camry inventory.

But inventory levels get a bit out of control when looking at Honda Accord and Nissan Altima. Altima is now at a bloated 60k units in inventory, which is about the same as it was for the start of October, when sales were just 21,785, or -11.5% lower than Oct 2012. Accord is at an even more bloated 63k, which is also about what it was for Oct, when sales were 25,162, or -11.2 lower than Oct 2012. Camry sales were 29,144, or -2.6 lower than Oct 2012. While Fusion sales were 21,740, up 71.3% over Oct 2012 and climbing.

Checking incentives for November, one would think Altima and Accord had huge deals happening for November and December. But that's not the case. Nothing has changed from October. Altima is offering the same $199/mp with $2,399 down, Accord is offering the same $209/mo with $2,499 down. By comparison, Camry is offing the same $219/mo with $1,999 down and Fusion is offering the same $199/mo with $2,528 down. The Ford, Toyota, Nissan and Honda deals are all good until 1/2/14 or 1/6/2014. So nothing should change until next year.

So the question is why is Nissan and Honda overstocking?

If Honda sold the same number of Accords as 2012 for Nov and Dec, they would move 55k units. But sales have been down a consistent -10+% with 4k and 3k unit declines in Sept and Oct.

If Nissan sold the same number of Altimas for Nov/Dec as of 2012, they would move just 43k units. But Altima sales have also been down over -10%, with 3k unit declines in Sept and in Oct.

Camry is the only import that has a chance of meeting it's Nov/Dec sales from 2012 of 60k units total. Even with a 3k unit decline for Sept and with an inventory level at 47k, or over 13k units less than Altima and Accord.

However, with increased production capacity, Fusion is the only midsize sedan with the momentum, and is expected to clearly exceed it's 2012 Nov/Dec sale of 34k units by a wide margin. August was up 3k, Sept up 7k and Oct was up 9k units.

So again, why do you think Honda and Nissan increased their inventories to such high levels, when there was no expectation of increased sales based on recent sales history?

Poor planning? Honda getting a jump start on huge incentives starting in January to get ahead of Camry for the first time? Not planning on Fusion taking 19k additional sales for Aug/Sept/Oct, and up to 20k more sales for Nov and Dec?
 

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Discussion Starter #2
As of today, Accord inventory has expanded to over 65k units. Altima is over 61k. Camry is up to 50k with Fusion up to 45k. Flat Rock should be at full speed by end of year.

Ford, Honda, Nissan and Toyota are all offering just about the same incentives and lease plans. With the understanding that with just 2 months left for 2013, Camry will remain #1, Accord #2, Altima #3 and Fusion will hold at #4. But for 2014 the midsize sedan sales crown will be up for grabs. Which is why it seems that Ford, Honda, Nissan and Toyota are loading up inventory for huge incentives on midsize sedans for 1st quarter 2014.
 

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Perhaps they are preparing for an inevitable battle for sales supremacy? In many ways the Accord is the # 1 car in the class if you consider that it leads the class for retail sales volume.
 

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Perhaps they are preparing for an inevitable battle for sales supremacy? In many ways the Accord is the # 1 car in the class if you consider that it leads the class for retail sales volume.
That's what I was thinking, load up the dealers and discount like crazy to pump up the yearly sales numbers. Taking the #1 tag from the Camry would be huge for Honda, it's played well for a long time at Toyota and losing it would hurt Toyota's reputation as much as it helps Honda's!
 

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Discussion Starter #5
Accord inventory is still rising at over 66k. Nissan is holding at 61k, Camry holding at 50k, with Fusion up to 47k.

This is crazy. 2014 will open with over 200k midsize cars in daily inventory, just between 4 manufacturers. Considering Jan 2013 sales totaled less than 100k sales between all 4 manufacturers.

If anyone was planning to buy a new midsize car, I would seriously wait until Jan.

Sonata at 27k does not seem to be playing the game.
 

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Toyota s lease deals are on fire sale levels..

Check here...

http://legendleasing.com/leases.asp

For the most part four door mid size sedans are all about the zero down and lowest monthly payment...

Once in awhile you get the style aspect to play as ford has done with the fusion and the company can command more profit per vehicle.

If you check that web link for the honda accord you'll see it's a nice value but not as good as the Toyota.

Nissan? The Altima fad has faded and price is moving the metal at current levels....but it's getting tough....

Fusion has shown that desirability has an important role in the mid size sedan market.....even if the monthly lease rate is higher...

It's the James Bond Aston Martin look many family men dream of....

I like it too...

Not enough to own one....yet I do admire its good looks.
 
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