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 dealers tacking
” market changes” on top of MSRP, there were nearly a.
half-million units of leftover 2022 model year cars still.
Advertised 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 dealership lots.According to S&P Global Mobilitys analysis of US dealer.
advertised inventory data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs advertised as.
readily available for sale the week ending December 4. Those 4 brand names.
represent 71% of 2022 advertised inventory listed by mainstream.
brand name 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 lorries in dealer marketed inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers generally ease off production in late.
summer season to transition to the brand-new model year, and clear out the last.
of their old designs by Christmas, certain car manufacturers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip shortage, inventory control is not as careful as it.
utilized to be.” Is running old inventories into the brand-new model year a bad thing?
It can be for automakers, however it could spell retail relief for.
consumers. With 22 designs carrying the preconception of being “older” -.
even if the 2023 model is unchanged – that can indicate dealers are.
incentivized to burn out the zero-miles 22s.” The longer you wait to change over your design year, the more it.
hits your residual values in regards to tougher grading,” Woodworth.
said.Some dealers are using below-MSRP discount rates 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 inventory arc for each model year follows a.
predictable curve, peaking in spring as production hits its stride,.
and after that descending in summertime throughout the annual selldown and the.
design year shifts in September and October. However supply chain.
chaos has made it impossible for some car manufacturers to follow.
tradition.That said, with specific aspects of the supply chain still in.
flux, it may make good sense for making continuity to continue.
If a 2023 small design change consists of a part, constructing 2022 models.
that is not easily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small design.
change is still increase. The very same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their foundations with the Escape.
platform.Remaining 2022 units are frequently specific to specific designs. In.
the marketplace for a high-end SUV? The designs with the highest remaining.
2022 model 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 site still wasnt listing.
the 2023 as available on December 15 – and as such 2022 models are.
still in strong supply. Amongst high-end brand names, Mercedes had 33% share.
of remaining 22 models still marketed the week ending December.
4, while Lincoln accounted for 22% share of leftover high-end.
22s. That stated, Mercedes dealerships have done a strong task of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design showing up. And other essential Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain hiccups likewise are affecting inventories in other.
methods. 10s of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on essential parts, and have been gathering in car park.
near their particular factories till they can be launched. On top.
of those incomplete systems, Ford dealerships had almost as many F-150s.
promoted the week ending December 4 as they performed in August in.
September. When the ghost systems finally receive their needed parts.
and enter wholesale stock – Ford hopes it will happen by the.
end of December – that will include to the pressure to clean out the.
22 designs at the dealer level.The combined black-swan events of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine interfered with.
traditional manufacturing and supply standards – the most recent 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.