Dr.Data

On the Need for Better Auto Sales Metrics

What a silly, naive notion! You seem to be proposing that auto companies ought to report profitability monthly. Can you name one industry that does that?

For insights into a company's financial health, read its quarterly financial report. Publicly held auto companies, like other industries, release their financial results quarterly in considerable detail, usually available about a month after the period ends. The auto industry reports dealer (not factory) sales by vehicle line every month, usually on the first or second business day of the subsequent month. There are also monthly production reports by vehicle line, which actually are more indicative of the manufacturers' revenues. You apparently don't realize that revenue is recognized by a manufacturer when a vehicle is produced (and sold to a dealer), not when the dealer delivers it to a final customer. When dealer sales of a particular vehicle don't correspond with factory sales (i.e., production), the resulting change in dealer inventories may be a harbinger of adjustments to future production schedules, either up or down.