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

For all the talk of low stocks, and cars and truck dealerships adding
” market modifications” on top of MSRP, there were nearly a.
half-million systems of leftover 2022 model year vehicles still.
Promoted for sale in the United States heading into the.
weekend of December. That is on top of the 2023 automobiles that have.
been arriving on dealer lots.According to S&P Global Mobilitys analysis of US dealer.
marketed stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models advertised as.
offered for sale the week ending December 4. Those four brand names.
account for 71% of 2022 advertised stock listed by mainstream.
brand dealerships – 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 cars in dealer promoted stock,.
according to the S&P Global Mobility analysis.While most automakers typically reduce off production in late.
summertime to shift to the new design year, and clear out the last.
of their old designs by Christmas, certain automakers really have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually lessened,” stated 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 brand-new design year a bad thing?
It can be for automakers, but it could spell retail relief for.
customers. With 22 designs carrying the stigma of being “older” -.
even if the 2023 model is unchanged – that can suggest dealers 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 tougher grading,” Woodworth.
said.Some dealerships are providing below-MSRP discounts on vehicles that.
brought sticker-price-plus Monroney labels simply months before. And.
with customer demand 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.
foreseeable curve, peaking in spring as production hits its stride,.
and after that coming down in summer during the yearly selldown and the.
design year transitions in September and October. Supply chain.
chaos has made it difficult for some car manufacturers to follow.
tradition.That said, with certain aspects of the supply chain still in.
flux, it might make good sense for producing continuity to continue.
constructing 2022 designs if a 2023 minor model change consists of a part.
that is not easily offered, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small design.
modification is still ramping up. The exact same extension of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their foundations with the Escape.
platform.Remaining 2022 units are frequently specific to particular models. In.
the market for a luxury SUV? The designs with the greatest staying.
2022 model year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
refreshing – 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. Amongst luxury brands, Mercedes had 33% share.
of staying 22 models still promoted the week ending December.
4, while Lincoln represented 22% share of remaining 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 key Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 design.
production.Supply chain missteps likewise 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 but were.
missing crucial parts, and have actually been gathering in car park.
near their particular factories up until they can be launched. On top.
of those incomplete units, Ford dealers had almost as numerous F-150s.
marketed the week ending December 4 as they did in August in.
September. When the ghost systems finally get their required parts.
and get in wholesale inventory – Ford hopes it will occur by the.
end of December – that will include to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan occasions of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine interfered with.
standard production and supply standards – the current downstream.
impact being the overrun of previous model-year production and.
stock. How the market can recuperate to its routine cadence.
depends upon its flexibility to these continued disturbances.