For all the talk of low inventories, and cars and truck dealerships tacking
” market modifications” on top of MSRP, there were almost a.
half-million systems of leftover 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 automobiles that have.
been getting here on dealer lots.According to S&P Global Mobilitys analysis of United States dealer.
promoted stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs advertised as.
offered for sale the week ending December 4. Those 4 brands.
account for 71% of 2022 promoted inventory noted by mainstream.
brand name dealers – 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 vehicles in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most automakers generally ease off production in late.
summer to transition to the brand-new model year, and clear out the last.
of their old designs by Christmas, particular car manufacturers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has lessened,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip lack, inventory control is not as meticulous as it.
utilized to be.” Is running old stocks into the brand-new design year a bad thing?
It can be for automakers, but it might spell retail relief for.
consumers. With 22 designs bring the preconception of being “older” -.
even if the 2023 model is the same – that can imply dealerships 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 harder grading,” Woodworth.
said.Some dealerships are providing below-MSRP discount rates on cars that.
brought sticker-price-plus Monroney labels just months before. And.
with customer need 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 model year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and after that coming down in summer during the yearly selldown and the.
design year shifts in September and October. However supply chain.
turmoil has made it impossible for some automakers to follow.
tradition.That stated, with certain components of the supply chain still in.
flux, it may make sense for making connection to continue.
If a 2023 small design modification consists of a part, building 2022 designs.
that is not easily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small model.
change is still increase. The same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to particular models. In.
the marketplace for a high-end SUV? The designs with the highest staying.
2022 design year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
freshening – the national mbusa.com site still wasnt listing.
the 2023 as available on December 15 – and as such 2022 models 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 leftover high-end.
22s. That said, Mercedes dealers have done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design showing up. And other crucial Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain hiccups also are affecting stocks in other.
ways. 10s of thousands of so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing crucial parts, and have been gathering in car park.
near their respective factories up until they can be released. On top.
of those unfinished units, Ford dealers 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 required parts.
and go into wholesale inventory – Ford hopes it will happen by the.
end of December – that will contribute to the pressure to clean out the.
22 models at the dealer level.The integrated black-swan occasions of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine disrupted.
conventional production and supply standards – the current downstream.
impact being the overrun of previous model-year production and.
inventory. How the industry can recover to its routine cadence.
depends upon its flexibility to these continued interruptions.

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