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 car dealers tacking
” market changes” on top of MSRP, there were almost a.
half-million units of leftover 2022 design year vehicles still.
marketed for sale in the United States heading into the very first.
weekend of December. That is on top of the 2023 cars that have.
been getting here on dealership lots.According to S&P Global Mobilitys analysis of United States dealer.
promoted inventory data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs marketed as.
available for sale the week ending December 4. Those 4 brands.
account for 71% of 2022 promoted stock listed by mainstream.
brand dealerships – 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 cars in dealership marketed inventory,.
according to the S&P Global Mobility analysis.While most automakers typically 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, specific car manufacturers actually have.
seen their 2022 inventories increase in October and November.” Model year discipline has receded,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as meticulous as it.
used to be.” Is running old stocks into the brand-new design year a bad thing?
It can be for automakers, however it might spell retail relief for.
customers. With 22 designs carrying the preconception of being “older” -.
even if the 2023 model is the same – that can indicate dealers are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your model 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 before. 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 design year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and then descending in summer season throughout the annual selldown and the.
model year transitions in September and October. But supply chain.
mayhem has actually made it difficult for some car manufacturers to follow.
tradition.That stated, with particular components of the supply chain still in.
flux, it may make sense for making connection to continue.
building 2022 designs if a 2023 minor model modification includes a part.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 minor design.
modification is still ramping up. The same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share numerous of their foundations with the Escape.
platform.Remaining 2022 systems are frequently specific to specific models. In.
the marketplace for a high-end SUV? The designs with the highest remaining.
2022 design year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
freshening – the national mbusa.com website still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 designs are.
still in strong supply. Among high-end brands, Mercedes had 33% share.
of staying 22 models still promoted the week ending December.
4, while Lincoln represented 22% share of remaining luxury.
22s. That said, Mercedes dealerships have actually done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design arriving. And other key Mercedes volume designs – GLE,.
S-Class, and C-Class – are mainly represented by 2023 model.
production.Supply chain hiccups also are impacting stocks in other.
ways. 10s of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line however were.
missing out on important parts, and have been gathering in car park.
near their respective factories until they can be released. On top.
of those unfinished systems, Ford dealers had almost as numerous F-150s.
advertised the week ending December 4 as they carried out in August in.
September. When the ghost units lastly get their required parts.
and go into wholesale inventory – Ford hopes it will happen by the.
end of December – that will include to the pressure to clear out the.
22 designs at the dealer level.The integrated black-swan occasions of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine disrupted.
standard manufacturing and supply norms – the newest downstream.
effect being the overrun of prior model-year production and.
stock. How the market can recuperate to its regular cadence.
depends upon its flexibility to these continued interruptions.