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

For all the talk of low inventories, and car dealerships adding
” market adjustments” on top of MSRP, there were almost a.
half-million units of leftover 2022 model year lorries still.
advertised for sale in the United States heading into the first.
weekend of December. That is on top of the 2023 vehicles that have.
been arriving on dealership lots.According to S&P Global Mobilitys analysis of United States dealer.
promoted stock data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs marketed as.
available for sale the week ending December 4. Those four brands.
account for 71% of 2022 advertised inventory noted by mainstream.
brand dealers – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 vehicles in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most automakers generally ease off production in late.
summer to shift to the new design year, and clear out the last.
of their old models by Christmas, certain automakers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually ebbed,” stated Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as precise as it.
used to be.” Is running old stocks into the brand-new design year a bad thing?
It can be for car manufacturers, however it could spell retail relief for.
consumers. With 22 models bring the preconception of being “older” -.
even if the 2023 design is the same – that can indicate 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 values in terms of harder grading,” Woodworth.
said.Some dealers are providing below-MSRP discount rates on cars that.
carried sticker-price-plus Monroney labels simply months prior to. And.
with consumer 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 design year follows a.
predictable curve, peaking in spring as production hits its stride,.
and then descending in summer season throughout the annual selldown and the.
design year transitions in September and October. Supply chain.
chaos has actually made it difficult for some automakers to follow.
tradition.That stated, with particular elements of the supply chain still in.
flux, it may make sense for making connection to continue.
developing 2022 designs if a 2023 minor model modification consists of a part.
that is not readily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small model.
modification is still ramping up. The very same extension of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their underpinnings with the Escape.
platform.Remaining 2022 systems are frequently particular to particular designs. In.
the market for a high-end SUV? The designs with the highest 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 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 promoted the week ending December.
4, while Lincoln accounted for 22% share of leftover luxury.
22s. That stated, Mercedes dealerships 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 crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 design.
production.Supply chain hiccups likewise are impacting inventories in other.
methods. 10s of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line but were.
missing out on crucial parts, and have actually been gathering in car park.
near their respective factories up until they can be released. On top.
of those incomplete units, Ford dealerships had almost as numerous F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost systems finally get their required parts.
and go into wholesale stock – Ford hopes it will occur by the.
end of December – that will contribute to the pressure to clear out the.
22 designs at the dealer level.The integrated black-swan occasions of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine disrupted.
conventional manufacturing and supply standards – the current downstream.
effect being the overrun of prior model-year production and.
stock. How the industry can recover to its regular cadence.
depends upon its flexibility to these continued disruptions.