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

For all the talk of low inventories, and automobile dealers tacking
” market modifications” on top of MSRP, there were almost a.
half-million systems of remaining 2022 model year vehicles 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 arriving on dealership lots.According to S&P Global Mobilitys analysis of US dealer.
marketed stock information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models marketed as.
available for sale the week ending December 4. Those four brands.
account for 71% of 2022 marketed inventory listed by mainstream.
brand dealers – and 66% of all dealer-advertised stock when.
including luxury marques.Among high-end brands, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 vehicles in dealership marketed inventory,.
according to the S&P Global Mobility analysis.While most automakers traditionally alleviate 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, specific car manufacturers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has actually receded,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, stock control is not as meticulous 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.
consumers. With 22 models carrying the preconception of being “older” -.
even if the 2023 design is unchanged – that can suggest 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 dealers are providing below-MSRP discounts on vehicles that.
brought sticker-price-plus Monroney labels simply months prior to. And.
with customer demand waning 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 hits its stride,.
and then coming down in summer throughout the annual selldown and the.
design year transitions in September and October. Supply chain.
turmoil 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 manufacturing connection to continue.
If a 2023 minor design change consists of a part, developing 2022 designs.
that is not easily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 minor model.
modification is still increase. The same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their foundations with the Escape.
platform.Remaining 2022 units are often particular to particular designs. In.
the market for a luxury SUV? The designs with the highest remaining.
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 offered on December 15 – and as such 2022 designs are.
still in strong supply. Among luxury brands, Mercedes had 33% share.
of staying 22 designs still marketed 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 stocks from mid-summer in anticipation of the.
23 model showing up. And other crucial Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 model.
production.Supply chain missteps also are impacting stocks in other.
methods. Tens of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing vital parts, and have been collecting in car park.
near their respective factories until they can be launched. On top.
of those incomplete systems, Ford dealers had nearly as numerous F-150s.
marketed the week ending December 4 as they did in August in.
September. When the ghost systems lastly get their required parts.
and get in wholesale inventory – Ford hopes it will take place by the.
end of December – that will add to the pressure to clean out the.
22 designs at the dealer level.The combined black-swan occasions of COVID, semiconductor.
scarcities, and the Russian intrusion of Ukraine interfered with.
standard production and supply norms – the most recent downstream.
impact being the overrun of prior model-year production and.
stock. How the industry can recover to its routine cadence.
depends upon its versatility to these continued disruptions.