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

For all the talk of low inventories, and cars and truck dealers tacking
” market changes” on top of MSRP, there were nearly a.
half-million units of remaining 2022 design year lorries 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 showing up on dealer lots.According to S&P Global Mobilitys analysis of US dealership.
marketed stock information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs promoted as.
offered for sale the week ending December 4. Those four brands.
represent 71% of 2022 marketed stock listed by mainstream.
brand dealerships – and 66% of all dealer-advertised stock when.
including luxury marques.Among high-end brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 vehicles in dealer advertised stock,.
according to the S&P Global Mobility analysis.While most automakers generally ease off production in late.
summer season to transition to the brand-new design year, and clear out the last.
of their old designs by Christmas, certain car manufacturers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip shortage, inventory control is not as meticulous as it.
used to be.” Is running old inventories into the new model year a bad thing?
It can be for car manufacturers, but it could spell retail relief for.
customers. With 22 models carrying the stigma of being “older” -.
even if the 2023 design is unchanged – that can mean dealers are.
incentivized to burn out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your recurring values in regards to harder grading,” Woodworth.
said.Some dealers are using below-MSRP discount rates on cars that.
brought sticker-price-plus Monroney labels simply months before. 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 stock arc for each model year follows a.
predictable curve, peaking in spring as production hits its stride,.
and after that coming down in summer season throughout the annual selldown and the.
model year shifts in September and October. Supply chain.
chaos has actually made it difficult for some car manufacturers to follow.
tradition.That said, with specific components of the supply chain still in.
flux, it may make sense for producing continuity to continue.
developing 2022 models if a 2023 small model change consists of a part.
that is not easily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 minor design.
modification is still ramping up. The very same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their foundations with the Escape.
platform.Remaining 2022 units are typically specific to particular designs. In.
the market for a high-end SUV? The designs with the greatest remaining.
2022 design year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
refreshing – the national mbusa.com site still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 models are.
still in strong supply. Among luxury brands, Mercedes had 33% share.
of staying 22 models still advertised the week ending December.
4, while Lincoln accounted for 22% share of remaining 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 design getting here. And other essential Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 model.
production.Supply chain hiccups also are affecting stocks in other.
methods. 10s of thousands of so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing important parts, and have been gathering in parking lots.
near their particular factories till they can be released. On top.
of those incomplete units, Ford dealerships had nearly as numerous F-150s.
marketed the week ending December 4 as they did in August in.
September. When the ghost units lastly get their needed parts.
and enter wholesale stock – 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.
lacks, and the Russian intrusion of Ukraine interrupted.
conventional production and supply norms – the current downstream.
impact being the overrun of prior model-year production and.
inventory. How the industry can recover to its regular cadence.
depends on its adaptability to these continued disturbances.