For all the talk of low inventories, and automobile dealers adding
” market changes” on top of MSRP, there were nearly a.
half-million systems of leftover 2022 design year automobiles still.
Advertised for sale in the United States heading into the.
weekend of December. That is on top of the 2023 lorries that have.
been showing up on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
promoted inventory information, 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 four brand names.
account for 71% of 2022 promoted stock noted by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
including luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 automobiles in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most automakers generally alleviate off production in late.
summer to transition to the brand-new model year, and clear out the last.
of their old designs by Christmas, certain automakers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip lack, stock control is not as meticulous as it.
used to be.” Is running old inventories into the new design year a bad thing?
It can be for car manufacturers, but it might spell retail relief for.
consumers. With 22 models carrying the preconception of being “older” -.
even if the 2023 model is the same – that can indicate dealers are.
incentivized to blow out the zero-miles 22s.” The longer you wait to alter over your design year, the more it.
hits your recurring values in terms of tougher grading,” Woodworth.
said.Some dealers are providing below-MSRP discount rates on lorries that.
carried sticker-price-plus Monroney labels just 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 inventory 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 yearly selldown and the.
model year shifts in September and October. But supply chain.
mayhem has made it difficult for some car manufacturers to follow.
tradition.That stated, with specific components of the supply chain still in.
flux, it might make sense for making connection to continue.
constructing 2022 designs if a 2023 small design change consists of a part.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 minor design.
modification is still increase. The exact same extension of late.
production 22 models applies to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to specific models. In.
the marketplace for a luxury SUV? The models 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 nationwide mbusa.com website still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 designs are.
still in strong supply. Amongst luxury brand names, Mercedes had 33% share.
of remaining 22 designs 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 task of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model showing up. And other key Mercedes volume models – GLE,.
S-Class, and C-Class – are mostly represented by 2023 model.
production.Supply chain hiccups also are impacting stocks in other.
methods. 10s of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing vital parts, and have actually been gathering in parking area.
near their respective factories until they can be launched. On top.
of those incomplete units, Ford dealerships had nearly as numerous F-150s.
advertised the week ending December 4 as they did in August in.
September. When the ghost systems finally receive their needed parts.
and enter wholesale stock – Ford hopes it will occur by the.
end of December – that will add to the pressure to clear out the.
22 designs at the dealership level.The integrated black-swan events of COVID, semiconductor.
scarcities, and the Russian invasion of Ukraine interrupted.
traditional production and supply norms – the most recent downstream.
effect being the overrun of prior model-year production and.
stock. How the market can recover to its regular cadence.
depends on its flexibility to these continued disturbances.

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