This short article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed department of S&P Global.

For all the talk of low inventories, and car dealers tacking
” market changes” on top of MSRP, there were nearly a.
half-million systems of leftover 2022 model year automobiles still.
Promoted for sale in the United States heading into the.
weekend of December. That is on top of the 2023 cars that have.
been showing up on dealer lots.According to S&P Global Mobilitys analysis of United States dealer.
marketed stock data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs marketed as.
readily available for sale the week ending December 4. Those 4 brand names.
account for 71% of 2022 promoted inventory noted by mainstream.
brand dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among high-end brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 automobiles in dealership promoted stock,.
according to the S&P Global Mobility analysis.While most automakers generally reduce off production in late.
summer to shift to the brand-new model year, and clear out the last.
of their old models by Christmas, certain automakers actually have.
seen their 2022 inventories increase in October and November.” Model year discipline has lessened,” said Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip shortage, inventory control is not as precise as it.
utilized to be.” Is running old stocks into the new design year a bad thing?
It can be for car manufacturers, however it could spell retail relief for.
consumers. With 22 designs bring the preconception of being “older” -.
even if the 2023 design is the same – that can imply dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your model year, the more it.
hits your residual values in terms of harder grading,” Woodworth.
said.Some dealerships are providing below-MSRP discounts on automobiles that.
carried sticker-price-plus Monroney labels simply months before. And.
with customer demand waning due to external economic forces such as.
inflation and recession-related layoffs, the pressure to move the.
metal increases.Usually, the stock arc for each design year follows a.
foreseeable curve, peaking in spring as production hits its stride,.
and after that coming down in summer throughout the yearly selldown and the.
design year transitions in September and October. But supply chain.
chaos has made it difficult for some car manufacturers to follow.
tradition.That said, with certain aspects of the supply chain still in.
flux, it might make sense for producing continuity to continue.
If a 2023 minor model modification includes a part, developing 2022 designs.
that is not easily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small design.
modification is still ramping up. The same extension of late.
production 22 models applies to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their underpinnings with the Escape.
platform.Remaining 2022 systems are frequently particular to particular models. In.
the marketplace for a luxury SUV? The models with the greatest remaining.
2022 model year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
freshening – the national mbusa.com website still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 models are.
still in strong supply. Among luxury brands, Mercedes had 33% share.
of remaining 22 designs still marketed the week ending December.
4, while Lincoln accounted for 22% share of leftover high-end.
22s. That stated, Mercedes dealers have done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design showing up. And other crucial Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 model.
production.Supply chain hiccups also are impacting stocks in other.
ways. Tens of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line however were.
missing out on essential parts, and have been collecting in parking lots.
near their particular factories till they can be launched. On top.
of those incomplete systems, Ford dealerships had nearly as numerous F-150s.
promoted the week ending December 4 as they carried out in August in.
September. When the ghost systems finally get their required parts.
and get in wholesale stock – Ford hopes it will occur by the.
end of December – that will contribute to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan occasions of COVID, semiconductor.
lacks, and the Russian intrusion of Ukraine interfered with.
conventional production and supply standards – the newest downstream.
impact being the overrun of previous model-year production and.
stock. How the market can recuperate to its regular cadence.
depends on its adaptability to these continued disruptions.