This article was published by S&P Global Mobility and not by S&P Global Ratings, which is an individually managed division of S&P Global.

For all the talk of low inventories, and vehicle dealers adding
” market adjustments” on top of MSRP, there were almost a.
half-million units of remaining 2022 model year automobiles still.
promoted for sale in the United States heading into the very first.
weekend of December. That is on top of the 2023 vehicles that have.
been showing up on dealer lots.According to S&P Global Mobilitys analysis of US dealership.
advertised stock information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs advertised as.
offered for sale the week ending December 4. Those four brands.
account for 71% of 2022 promoted inventory listed 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 cars in dealer promoted stock,.
according to the S&P Global Mobility analysis.While most car manufacturers generally relieve off production in late.
summer to shift to the 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 actually lessened,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip lack, inventory control is not as meticulous as it.
utilized to be.” Is running old stocks into the brand-new design year a bad thing?
It can be for car manufacturers, but it might spell retail relief for.
consumers. With 22 models carrying the stigma of being “older” -.
even if the 2023 model is the same – that can indicate dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your design year, the more it.
hits your recurring worths in terms of tougher grading,” Woodworth.
said.Some dealers are using below-MSRP discount rates on cars that.
carried sticker-price-plus Monroney labels simply months prior to. And.
with customer need subsiding due to external financial forces such as.
inflation and recession-related layoffs, the pressure to move the.
metal increases.Usually, the stock arc for each model year follows a.
predictable curve, peaking in spring as production hits its stride,.
and then descending in summertime during the yearly selldown and the.
model year shifts in September and October. But supply chain.
turmoil has made it difficult for some car manufacturers to follow.
tradition.That stated, with specific aspects of the supply chain still in.
flux, it may make sense for producing connection to continue.
developing 2022 designs if a 2023 small design modification consists of a part.
that is not readily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small design.
change is still increase. The same extension of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share many of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to certain designs. In.
the market for a high-end SUV? The models with the greatest remaining.
2022 design year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
freshening – the national mbusa.com site still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 models are.
still in strong supply. Among luxury brand names, Mercedes had 33% share.
of remaining 22 designs still advertised the week ending December.
4, while Lincoln represented 22% share of leftover luxury.
22s. That stated, Mercedes dealers have actually done a strong task of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design arriving. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 design.
production.Supply chain missteps likewise are impacting inventories in other.
ways. 10s of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing essential parts, and have actually been collecting in parking area.
near their respective factories till they can be launched. On top.
of those incomplete units, Ford dealerships had almost as numerous F-150s.
promoted the week ending December 4 as they did in August in.
September. When the ghost systems finally get their needed parts.
and enter wholesale inventory – Ford hopes it will occur by the.
end of December – that will contribute to the pressure to clear out the.
22 models at the dealership level.The combined black-swan occasions of COVID, semiconductor.
scarcities, and the Russian intrusion of Ukraine interfered with.
conventional production and supply standards – the current downstream.
impact being the overrun of previous model-year production and.
stock. How the market can recuperate to its routine cadence.
depends on its flexibility to these continued disruptions.