This post was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately handled division of S&P Global.

For all the talk of low stocks, and vehicle dealers adding
” market modifications” on top of MSRP, there were almost a.
half-million units of remaining 2022 design year automobiles still.
Advertised for sale in the United States heading into the.
weekend of December. That is on top of the 2023 automobiles that have.
been arriving on dealer lots.According to S&P Global Mobilitys analysis of United States dealership.
advertised stock data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs promoted as.
available for sale the week ending December 4. Those 4 brand names.
account for 71% of 2022 marketed stock listed by mainstream.
brand dealerships – and 66% of all dealer-advertised inventory when.
including luxury marques.Among high-end brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 lorries in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally alleviate off production in late.
summer to transition to the new model year, and clear out the last.
of their old models by Christmas, certain automakers really 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 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 automakers, but it might spell retail relief for.
consumers. With 22 models bring the stigma 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 change over your model year, the more it.
hits your residual values in regards to tougher grading,” Woodworth.
said.Some dealerships are providing below-MSRP discounts on automobiles that.
carried sticker-price-plus Monroney labels just months prior to. And.
with customer demand waning 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 design year follows a.
foreseeable curve, peaking in spring as production strikes its stride,.
and after that coming down in summer throughout the yearly selldown and the.
design year transitions in September and October. However supply chain.
mayhem has made it impossible for some car manufacturers to follow.
tradition.That said, with particular elements of the supply chain still in.
flux, it may make sense for producing continuity to continue.
If a 2023 minor model change consists of a part, building 2022 designs.
that is not easily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 minor model.
change is still ramping up. The exact same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to specific models. In.
the marketplace for a high-end SUV? The designs with the highest staying.
2022 model year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
freshening – the nationwide mbusa.com website still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 designs are.
still in strong supply. Amongst luxury brands, Mercedes had 33% share.
of staying 22 models still marketed the week ending December.
4, while Lincoln represented 22% share of leftover high-end.
22s. That stated, Mercedes dealerships have actually done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 design arriving. And other crucial Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain missteps 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 however were.
missing out on important parts, and have actually been collecting in car park.
near their respective factories until they can be released. On top.
of those unfinished units, Ford dealerships had nearly as many F-150s.
advertised the week ending December 4 as they carried out 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 add to the pressure to clear out the.
22 models at the dealership level.The combined black-swan occasions of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine interfered with.
conventional production and supply standards – the current downstream.
effect being the overrun of prior model-year production and.
stock. How the industry can recuperate to its regular cadence.
depends upon its adaptability to these continued disruptions.