This short article was released by S&P Global Mobility and not by S&P Global Ratings, which is an independently handled department of S&P Global.

For all the talk of low stocks, and car dealerships adding
” market modifications” on top of MSRP, there were nearly a.
half-million units of leftover 2022 model year cars still.
Marketed for sale in the United States heading into the.
weekend of December. That is on top of the 2023 vehicles that have.
been showing up on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
advertised stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs promoted as.
offered for sale the week ending December 4. Those four brands.
account for 71% of 2022 marketed stock noted by mainstream.
brand dealers – and 66% of all dealer-advertised inventory when.
including high-end marques.Among luxury brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 automobiles in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most automakers generally relieve off production in late.
summer to transition to the new design year, and clear out the last.
of their old models by Christmas, particular automakers really have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually receded,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip shortage, inventory control is not as meticulous as it.
utilized to be.” Is running old inventories into the new design year a bad thing?
It can be for automakers, however it could spell retail relief for.
customers. With 22 models carrying the preconception of being “older” -.
even if the 2023 design is the same – that can suggest dealers are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your design year, the more it.
hits your recurring worths in terms of tougher grading,” Woodworth.
said.Some dealerships are offering below-MSRP discounts on cars that.
carried sticker-price-plus Monroney labels just months prior to. And.
with customer demand subsiding 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 design year follows a.
foreseeable curve, peaking in spring as production hits its stride,.
and then coming down in summertime throughout the yearly selldown and the.
model year shifts in September and October. However 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 might make sense for manufacturing connection to continue.
If a 2023 minor model modification consists of a part, developing 2022 models.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 minor design.
change is still ramping up. The very same continuation 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 systems are often particular to certain models. In.
the marketplace for a luxury SUV? The models with the highest staying.
2022 design year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
freshening – the nationwide mbusa.com website still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 models are.
still in strong supply. Amongst high-end brands, Mercedes had 33% share.
of remaining 22 designs still advertised the week ending December.
4, while Lincoln represented 22% share of remaining luxury.
22s. That said, 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 designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain missteps also are impacting stocks in other.
methods. 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 crucial parts, and have been collecting in parking lots.
near their particular factories till they can be released. On top.
of those unfinished 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 units 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 models at the dealership level.The integrated black-swan events of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interfered with.
conventional manufacturing and supply standards – the newest downstream.
effect being the overrun of prior model-year production and.
stock. How the market can recover to its regular cadence.
depends on its versatility to these continued disturbances.