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:

Inventory is starting to become a serious issue across all U.S. automakers. On average, new vehicles sold in May spent 74 days on dealer lots, the highest level for the month of May since 2009 when the industry was plagued with the looming effect of the Great Recession. 29% of vehicles sold so far in May have sat on lots for 90 days or longer, up from about 25% last year.