U.S. dealers entered February with about 200,000 units more in inventory than they need, and that’s assuming demand resumes a level equal to a 17 million-unit seasonally adjusted annual rate after dropping to a 17-month low in January. If demand fails to turn upward from January’s 16.6 million-unit SAAR, there will be more production slowdowns and probably some increase in retail incentives, even though the industry in total has been reducing them since last summer. Inventory ...

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