This post 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 vehicle dealerships tacking
” market changes” on top of MSRP, there were almost a.
half-million systems of leftover 2022 model year automobiles still.
Advertised for sale in the United States heading into the.
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 US dealership.
advertised inventory information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models promoted as.
offered for sale the week ending December 4. Those four brands.
account for 71% of 2022 promoted inventory noted by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 vehicles in dealership advertised stock,.
according to the S&P Global Mobility analysis.While most car manufacturers generally alleviate off production in late.
summer season to shift to the new model year, and clear out the last.
of their old designs by Christmas, particular automakers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has receded,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip scarcity, stock control is not as meticulous as it.
utilized to be.” Is running old stocks into the brand-new model year a bad thing?
It can be for automakers, but it might spell retail relief for.
customers. With 22 models bring the stigma of being “older” -.
even if the 2023 model is the same – that can indicate dealers are.
incentivized to blow out the zero-miles 22s.” The longer you wait to change over your design year, the more it.
hits your recurring worths in terms of harder grading,” Woodworth.
said.Some dealerships are using below-MSRP discounts on cars that.
carried sticker-price-plus Monroney labels just months prior to. 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.
predictable curve, peaking in spring as production strikes its stride,.
and then descending in summer throughout the annual selldown and the.
model year transitions in September and October. Supply chain.
turmoil has made it difficult for some car manufacturers to follow.
tradition.That stated, with certain elements of the supply chain still in.
flux, it may make good sense for manufacturing connection to continue.
developing 2022 designs if a 2023 minor model change consists of a part.
that is not readily offered, 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 a number of their underpinnings with the Escape.
platform.Remaining 2022 units are typically specific to specific models. In.
the market for a luxury SUV? The designs with the greatest 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 national mbusa.com website still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 designs are.
still in strong supply. Among luxury brand names, Mercedes had 33% share.
of remaining 22 designs still marketed the week ending December.
4, while Lincoln accounted for 22% share of leftover luxury.
22s. That stated, Mercedes dealers have actually done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design getting here. And other essential Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain hiccups also are affecting inventories in other.
ways. Tens of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing out on vital parts, and have been gathering in parking area.
near their respective factories up until they can be launched. On top.
of those incomplete units, Ford dealers had nearly as lots of F-150s.
advertised the week ending December 4 as they did in August in.
September. When the ghost units lastly get their needed parts.
and go into wholesale inventory – Ford hopes it will occur by the.
end of December – that will include to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan occasions of COVID, semiconductor.
scarcities, and the Russian invasion of Ukraine interrupted.
traditional manufacturing and supply standards – the most recent downstream.
impact being the overrun of previous model-year production and.
inventory. How the market can recover to its regular cadence.
depends on its adaptability to these continued disturbances.