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

For all the talk of low inventories, and vehicle dealerships adding
” market modifications” on top of MSRP, there were almost a.
half-million units of leftover 2022 model year automobiles still.
promoted for sale in the United States heading into the first.
weekend of December. That is on top of the 2023 lorries that have.
been showing up on dealership lots.According to S&P Global Mobilitys analysis of United States dealership.
marketed inventory data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models advertised as.
offered for sale the week ending December 4. Those 4 brands.
represent 71% of 2022 marketed stock listed by mainstream.
brand dealers – and 66% of all dealer-advertised stock when.
consisting of high-end marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 vehicles in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally relieve off production in late.
summer season to transition to the new model year, and clear out the last.
of their old designs by Christmas, particular car manufacturers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has lessened,” stated Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip scarcity, stock control is not as precise as it.
utilized to be.” Is running old stocks into the new model year a bad thing?
It can be for car manufacturers, but it could spell retail relief for.
consumers. With 22 models carrying the preconception of being “older” -.
even if the 2023 design is unchanged – that can mean 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 values in terms of tougher grading,” Woodworth.
said.Some dealers are providing below-MSRP discounts on vehicles that.
carried sticker-price-plus Monroney labels just months prior to. And.
with customer demand 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.
foreseeable curve, peaking in spring as production strikes its stride,.
and then descending in summer season throughout the yearly selldown and the.
design year shifts in September and October. Supply chain.
chaos has made it impossible for some car manufacturers to follow.
tradition.That stated, with specific components of the supply chain still in.
flux, it may make good sense for manufacturing connection to continue.
If a 2023 small design modification consists of a part, constructing 2022 designs.
that is not easily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 minor model.
change is still increase. The very same extension of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share numerous of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to specific designs. In.
the marketplace for a luxury SUV? The models with the highest staying.
2022 design year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
refreshing – the nationwide mbusa.com website still wasnt listing.
the 2023 as available on December 15 – and as such 2022 models are.
still in strong supply. Amongst luxury brand names, Mercedes had 33% share.
of remaining 22 designs still advertised the week ending December.
4, while Lincoln accounted for 22% share of leftover luxury.
22s. That stated, Mercedes dealerships have actually done a strong task of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model showing up. And other essential Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain missteps also are impacting stocks in other.
ways. Tens of thousands of so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on crucial parts, and have actually been collecting in parking lots.
near their respective factories till they can be launched. On top.
of those incomplete units, Ford dealerships had almost as many F-150s.
promoted the week ending December 4 as they carried out in August in.
September. When the ghost systems lastly receive their needed parts.
and go into wholesale stock – Ford hopes it will happen by the.
end of December – that will contribute to the pressure to clear out the.
22 models at the dealership level.The integrated black-swan events of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interfered with.
traditional production and supply norms – the current downstream.
impact being the overrun of previous model-year production and.
inventory. How the market can recover to its routine cadence.
depends upon its adaptability to these continued interruptions.