This post was released 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 stocks, and vehicle dealers adding
” market modifications” on top of MSRP, there were almost a.
half-million units of remaining 2022 model year cars still.
Promoted for sale in the United States heading into the.
weekend of December. That is on top of the 2023 automobiles that have.
been getting here on dealer lots.According to S&P Global Mobilitys analysis of US dealer.
marketed inventory data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models promoted as.
offered for sale the week ending December 4. Those 4 brand names.
account for 71% of 2022 advertised inventory noted by mainstream.
brand dealerships – and 66% of all dealer-advertised stock when.
consisting of luxury marques.Among high-end brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 cars in dealer marketed inventory,.
according to the S&P Global Mobility analysis.While most automakers generally alleviate off production in late.
summer to shift to the brand-new model year, and clear out the last.
of their old models by Christmas, specific automakers really have.
seen their 2022 inventories increase in October and November.” Model year discipline has actually lessened,” stated Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as careful as it.
used to be.” Is running old inventories into the brand-new model year a bad thing?
It can be for automakers, but it could spell retail relief for.
consumers. With 22 designs carrying the stigma of being “older” -.
even if the 2023 design is unchanged – that can mean dealers are.
incentivized to blow out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your recurring values in regards to harder grading,” Woodworth.
said.Some dealerships are providing below-MSRP discount rates on cars that.
brought sticker-price-plus Monroney labels simply months before. And.
with consumer 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 model year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and after that coming down in summer season during the annual selldown and the.
design year shifts in September and October. However supply chain.
chaos has made it impossible for some automakers to follow.
tradition.That said, with specific elements of the supply chain still in.
flux, it may make good sense for manufacturing continuity to continue.
If a 2023 minor design change includes a part, building 2022 designs.
that is not easily offered, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealers from its Louisville factory, as the 2023 minor model.
change is still increase. The exact same continuation of late.
production 22 models applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their underpinnings with the Escape.
platform.Remaining 2022 systems are frequently specific to certain models. In.
the market for a high-end SUV? The models with the greatest remaining.
2022 model year units 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 site still wasnt listing.
the 2023 as available on December 15 – and as such 2022 designs are.
still in strong supply. Amongst high-end brand names, Mercedes had 33% share.
of remaining 22 models still advertised the week ending December.
4, while Lincoln accounted for 22% share of remaining luxury.
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 getting here. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 design.
production.Supply chain hiccups also are impacting inventories in other.
ways. Tens of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line but were.
missing crucial parts, and have been collecting in car park.
near their particular factories up until they can be released. On top.
of those unfinished units, Ford dealerships had almost as lots of F-150s.
promoted the week ending December 4 as they did in August in.
September. When the ghost units lastly receive their required parts.
and go into wholesale inventory – Ford hopes it will occur by the.
end of December – that will contribute to the pressure to clean out the.
22 designs at the dealership level.The combined black-swan events of COVID, semiconductor.
scarcities, and the Russian intrusion of Ukraine disrupted.
traditional manufacturing and supply standards – the most recent downstream.
impact being the overrun of previous model-year production and.
inventory. How the market can recuperate to its regular cadence.
depends on its adaptability to these continued disturbances.