This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately handled department of S&P Global.

For all the talk of low inventories, and vehicle dealers adding
” market changes” on top of MSRP, there were almost a.
half-million units of leftover 2022 model year cars still.
advertised 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 arriving on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
marketed stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models advertised as.
available for sale the week ending December 4. Those four brands.
account for 71% of 2022 marketed stock noted by mainstream.
brand dealerships – and 66% of all dealer-advertised stock when.
consisting of luxury marques.Among high-end brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 automobiles in dealership promoted inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers typically ease off production in late.
summertime to shift to the new model year, and clear out the last.
of their old designs by Christmas, certain automakers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has actually receded,” stated Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip lack, inventory control is not as meticulous as it.
used to be.” Is running old stocks into the new design year a bad thing?
It can be for car manufacturers, however it could spell retail relief for.
consumers. With 22 models carrying the preconception of being “older” -.
even if the 2023 model is the same – that can suggest 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 terms of harder grading,” Woodworth.
said.Some dealers are using below-MSRP discounts on automobiles that.
brought sticker-price-plus Monroney labels simply months prior to. And.
with consumer need waning due to external financial forces such as.
inflation and recession-related layoffs, the pressure to move the.
metal increases.Usually, the stock arc for each model year follows a.
predictable curve, peaking in spring as production hits its stride,.
and after that coming down in summertime throughout the annual selldown and the.
design year shifts in September and October. However supply chain.
turmoil has actually made it impossible for some automakers to follow.
tradition.That said, with certain aspects of the supply chain still in.
flux, it might make good sense for producing connection to continue.
If a 2023 small design modification consists of a part, building 2022 models.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 minor design.
change is still ramping up. The same extension of late.
production 22 models applies to the Ford Bronco Sport and Lincoln.
Corsair, which share many of their foundations with the Escape.
platform.Remaining 2022 systems are typically particular to particular designs. In.
the market for a high-end SUV? The models with the greatest 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.
refreshing – the nationwide mbusa.com site still wasnt listing.
the 2023 as available on December 15 – and as such 2022 designs are.
still in strong supply. Amongst luxury brand names, Mercedes had 33% share.
of staying 22 models still advertised the week ending December.
4, while Lincoln represented 22% share of leftover high-end.
22s. That said, Mercedes dealers have actually done a strong task of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model getting here. And other essential Mercedes volume models – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain missteps also are affecting inventories in other.
methods. Tens of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on essential parts, and have been collecting in parking area.
near their respective factories till they can be released. On top.
of those incomplete units, Ford dealers had nearly as many F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost systems lastly get their needed parts.
and go into wholesale inventory – 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.
scarcities, and the Russian intrusion of Ukraine disrupted.
traditional manufacturing and supply standards – the most recent downstream.
impact being the overrun of previous model-year production and.
inventory. How the industry can recover to its routine cadence.
depends on its flexibility to these continued disturbances.