Car inventory in June was at roughly a 43-day supply, well below the standard 60-day level, according to J.

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At best, the nearest dealer looks at other dealers' inventory to find the closest car.

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That meant selling information to virtually anyone--inventory-tracking data to car dealers, load-matching service to truckers, coupon-printing kiosks to grocery stores and fire-alert information to forestry services.

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So in September, when U.S. car sales slowed and Chrysler's inventory began piling up on dealer lots, rather than keeping the factories humming and then boosting discounts to move the excess vehicles--a strategy that drove Chrysler into deep financial trouble in 2006 and at other times in its history--Nardelli decided to shut down six factories until the glut disappeared.

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Car retailers are now carrying almost two months of inventory of foreign-branded vehicles and 60 to 80 days of domestic ones.

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While recent reports suggest a softening of prices in the used-car market in the coming months, values of pre-owned models continue to be at record highs, due largely to inventory shortages caused by depressed new-car sales and leasing following the economic collapse in late 2008.

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On the radio, car companies are asking people to trade in their used cars because their inventory is low.

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The reason is that average inventory turns worsened for retailers last quarter (excluding grocers, drugstores and car dealers).

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This sunny forecast is largely based on an expected decline in crude oil prices combined with higher gasoline inventory levels and a continuing drop in demand due to increased small-car sales and other factors.

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