For all the talk of low stocks, and vehicle dealers adding
” market changes” on top of MSRP, there were almost a.
half-million systems of remaining 2022 model year lorries still.
advertised 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 showing up on dealership lots.According to S&P Global Mobilitys analysis of US dealer.
promoted stock information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs marketed as.
readily available for sale the week ending December 4. Those four brands.
account for 71% of 2022 promoted stock noted by mainstream.
brand name dealers – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 automobiles in dealer advertised stock,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally ease off production in late.
summer season to shift to the brand-new model year, and clear out the last.
of their old designs by Christmas, certain car manufacturers really have.
seen their 2022 inventories increase in October and November.” Model year discipline has dropped,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as precise as it.
utilized to be.” Is running old inventories into the new design year a bad thing?
It can be for car manufacturers, but it could spell retail relief for.
customers. With 22 designs carrying the preconception of being “older” -.
even if the 2023 model is the same – that can indicate dealerships 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 values in regards to harder grading,” Woodworth.
said.Some dealers are offering below-MSRP discounts on cars that.
carried sticker-price-plus Monroney labels just months before. And.
with customer demand 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 model year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and after that descending in summer throughout the yearly selldown and the.
design year shifts in September and October. Supply chain.
mayhem has made it impossible for some automakers to follow.
tradition.That said, with particular elements of the supply chain still in.
flux, it might make sense for producing continuity to continue.
building 2022 models if a 2023 minor design change includes a part.
that is not readily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 small model.
modification is still ramping up. The same continuation of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share numerous of their underpinnings with the Escape.
platform.Remaining 2022 systems are frequently specific to specific designs. In.
the marketplace for a high-end SUV? The models 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 nationwide mbusa.com website still wasnt listing.
the 2023 as offered 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 designs still promoted the week ending December.
4, while Lincoln accounted for 22% share of leftover high-end.
22s. That said, Mercedes dealerships have actually done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model getting here. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain missteps also are impacting inventories in other.
methods. 10s of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on important parts, and have been collecting in parking lots.
near their particular factories up until they can be launched. On top.
of those incomplete units, Ford dealerships had almost as lots of F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost units finally get their needed parts.
and enter wholesale stock – Ford hopes it will occur by the.
end of December – that will add to the pressure to clean out the.
22 models at the dealer level.The combined black-swan events of COVID, semiconductor.
shortages, and the Russian invasion of Ukraine interfered with.
standard manufacturing and supply standards – the most recent downstream.
impact being the overrun of prior model-year production and.
inventory. How the industry can recuperate to its routine cadence.
depends on its adaptability to these continued disturbances.

This post was released by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.