This post was published by S&P Global Mobility and not by S&P Global Ratings, which is an independently managed division of S&P Global.

For all the talk of low inventories, and car dealers tacking
” market modifications” on top of MSRP, there were nearly a.
half-million units of leftover 2022 design year cars still.
promoted for sale in the United States heading into the very first.
weekend of December. That is on top of the 2023 lorries that have.
been arriving on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
marketed inventory data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs promoted as.
readily available for sale the week ending December 4. Those 4 brands.
account for 71% of 2022 promoted stock listed by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 vehicles in dealer advertised inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally reduce off production in late.
summertime to shift to the brand-new model year, and clear out the last.
of their old designs by Christmas, specific car manufacturers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually dropped,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip shortage, stock control is not as precise as it.
used to be.” Is running old inventories into the brand-new design year a bad thing?
It can be for car manufacturers, however it could spell retail relief for.
consumers. With 22 models bring the preconception of being “older” -.
even if the 2023 model is the same – that can suggest dealerships are.
incentivized to blow out the zero-miles 22s.” The longer you wait to change over your design year, the more it.
hits your recurring values in terms of tougher grading,” Woodworth.
said.Some dealers are using below-MSRP discounts on automobiles that.
carried sticker-price-plus Monroney labels simply months before. And.
with consumer 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.
predictable curve, peaking in spring as production hits its stride,.
and after that descending in summertime throughout the yearly selldown and the.
model year transitions in September and October. Supply chain.
turmoil has actually made it difficult for some car manufacturers to follow.
tradition.That stated, with specific elements of the supply chain still in.
flux, it may make sense for manufacturing continuity to continue.
If a 2023 small model modification includes a part, developing 2022 designs.
that is not easily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small design.
change is still increase. The same extension of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their underpinnings with the Escape.
platform.Remaining 2022 units are often specific to specific models. In.
the market for a high-end SUV? The designs with the greatest staying.
2022 design year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
refreshing – the national mbusa.com site still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 designs are.
still in strong supply. Among high-end brand names, Mercedes had 33% share.
of remaining 22 models still promoted the week ending December.
4, while Lincoln accounted for 22% share of remaining high-end.
22s. That said, Mercedes dealerships have actually done a strong task of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design arriving. And other essential Mercedes volume models – GLE,.
S-Class, and C-Class – are mostly represented by 2023 model.
production.Supply chain missteps likewise are affecting inventories 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 essential parts, and have actually been collecting in parking area.
near their particular factories until they can be released. On top.
of those incomplete systems, Ford dealers had nearly as many F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost units finally get their required parts.
and get in wholesale inventory – Ford hopes it will occur by the.
end of December – that will contribute to the pressure to clear out the.
22 designs at the dealer level.The combined black-swan occasions of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine interrupted.
traditional production and supply norms – 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 flexibility to these continued interruptions.