It was only days ago that we noted JD Power's pessimistic look at bloated inventory and stuffed channels in the automotive industry. Now, a new Bank of America note echoes the magnitude of the problem. "The peak in auto sales is clear," the bank concludes.
The note points out that inventory for light trucks and SUVs is climbing to "uncomfortably high levels" which are indicative of even more softening in automotive sales at a time when producers have been too optimistic about demand. Recall, JD Power had stated, days ago: