The month-to-month rise in August inventory is not alarming - normal summer trend. Overall, inventory still is lean relative to current demand. However, although average retail prices are falling, it remains true in a strong economy that the lower are stock levels on dealer lots, the more pricing power they have. Furthermore, the shortage of inventory, when compared to demand, is weighted more to low-price vehicles than other segments. Those dynamics, as well as a dearth of fresh (non-electric) products, have led to slower-than-expected growth in demand. Accordingly, manufacturers are lightening up on the aggressiveness of their production plans.

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