This short article was published 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 inventories, and car dealerships tacking
” market adjustments” on top of MSRP, there were almost a.
half-million systems of remaining 2022 model year lorries 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 dealer lots.According to S&P Global Mobilitys analysis of US dealership.
promoted inventory information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models promoted as.
available for sale the week ending December 4. Those four brand names.
represent 71% of 2022 promoted stock 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 showed the.
most remaining 2022 cars in dealer promoted stock,.
according to the S&P Global Mobility analysis.While most car manufacturers typically reduce off production in late.
summertime to transition to the new design year, and clear out the last.
of their old designs by Christmas, certain automakers actually have.
seen their 2022 inventories increase in October and November.” Model year discipline has receded,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip lack, inventory control is not as precise as it.
utilized to be.” Is running old stocks into the new model year a bad thing?
It can be for automakers, but it could spell retail relief for.
customers. With 22 models bring the preconception of being “older” -.
even if the 2023 model is unchanged – that can imply dealers are.
incentivized to burn out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your residual worths in terms of tougher grading,” Woodworth.
said.Some dealers are providing below-MSRP discounts on automobiles that.
brought sticker-price-plus Monroney labels just months prior to. And.
with consumer need subsiding due to external financial 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 descending in summer season during the yearly selldown and the.
model year shifts in September and October. However supply chain.
mayhem has actually made it impossible for some automakers to follow.
tradition.That said, with specific aspects of the supply chain still in.
flux, it might make good sense for producing continuity to continue.
developing 2022 models if a 2023 minor design change includes a part.
that is not readily offered, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small design.
modification is still ramping up. The exact same extension of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their foundations with the Escape.
platform.Remaining 2022 systems are often specific to particular designs. In.
the market for a high-end SUV? The designs with the greatest staying.
2022 model year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
freshening – the nationwide mbusa.com site still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 models are.
still in strong supply. Amongst luxury brand names, Mercedes had 33% share.
of remaining 22 designs still advertised the week ending December.
4, while Lincoln represented 22% share of leftover luxury.
22s. That stated, Mercedes dealerships have actually done a strong task of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model showing up. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain hiccups likewise are impacting inventories in other.
ways. Tens of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line but were.
missing important parts, and have actually been collecting in parking lots.
near their respective factories till they can be launched. On top.
of those unfinished systems, Ford dealerships had nearly as numerous F-150s.
advertised the week ending December 4 as they performed in August in.
September. When the ghost units finally receive their required parts.
and get in wholesale inventory – Ford hopes it will take place by the.
end of December – that will contribute to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan events of COVID, semiconductor.
lacks, and the Russian intrusion of Ukraine disrupted.
conventional production and supply standards – the newest downstream.
impact being the overrun of prior model-year production and.
stock. How the industry can recover to its regular cadence.
depends on its versatility to these continued interruptions.