For all the talk of low inventories, and cars and truck dealers adding
” market adjustments” on top of MSRP, there were almost a.
half-million units of leftover 2022 design year vehicles still.
marketed for sale in the United States heading into the 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 US dealership.
advertised inventory information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models marketed as.
available for sale the week ending December 4. Those 4 brand names.
represent 71% of 2022 promoted inventory noted by mainstream.
brand dealerships – and 66% of all dealer-advertised stock when.
including high-end 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 ease off production in late.
summertime to shift to the new model year, and clear out the last.
of their old designs by Christmas, specific automakers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has actually lessened,” stated Cheryl Woodworth,.
seeking advice from 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 inventories into the brand-new design year a bad thing?
It can be for automakers, but it could spell retail relief for.
consumers. With 22 models bring the preconception of being “older” -.
even if the 2023 model is unchanged – that can imply dealerships are.
incentivized to blow out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your recurring worths in terms of tougher grading,” Woodworth.
said.Some dealers are offering below-MSRP discount rates on vehicles that.
carried sticker-price-plus Monroney labels simply months prior to. And.
with customer 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 model year follows a.
foreseeable curve, peaking in spring as production strikes its stride,.
and after that descending in summer during the annual selldown and the.
design year transitions in September and October. Supply chain.
chaos has actually made it impossible for some automakers to follow.
tradition.That stated, with specific elements of the supply chain still in.
flux, it might make sense for producing continuity to continue.
If a 2023 minor design change includes a part, developing 2022 models.
that is not easily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 small design.
modification is still ramping up. The same extension of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share many of their foundations with the Escape.
platform.Remaining 2022 units are frequently particular to particular designs. In.
the market for a high-end SUV? The models with the greatest staying.
2022 model 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 site still wasnt listing.
the 2023 as readily available 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 marketed the week ending December.
4, while Lincoln accounted for 22% share of remaining luxury.
22s. That said, Mercedes dealerships have done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design arriving. 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 inventories in other.
methods. 10s of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing out on crucial parts, and have been gathering in parking lots.
near their respective factories up until they can be launched. On top.
of those incomplete systems, Ford dealers had almost as many F-150s.
marketed the week ending December 4 as they carried out in August in.
September. When the ghost systems finally receive their needed parts.
and go into wholesale stock – Ford hopes it will happen by the.
end of December – that will include to the pressure to clean out the.
22 models at the dealership level.The integrated black-swan occasions of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interrupted.
standard manufacturing and supply norms – the most recent downstream.
effect being the overrun of prior model-year production and.
stock. How the industry can recover to its routine cadence.
depends on its adaptability to these continued interruptions.

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.