This article 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 changes” on top of MSRP, there were nearly a.
half-million systems of leftover 2022 model year vehicles still.
advertised for sale in the United States heading into the very 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 US dealership.
advertised stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models promoted as.
readily available for sale the week ending December 4. Those four brands.
account for 71% of 2022 promoted stock listed by mainstream.
brand dealers – and 66% of all dealer-advertised stock when.
including luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 lorries in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers generally ease off production in late.
summertime to transition to the new design year, and clear out the last.
of their old models by Christmas, particular car manufacturers really have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually receded,” stated Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip lack, inventory control is not as careful as it.
used to be.” Is running old inventories into the new model 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 design is unchanged – that can indicate dealers are.
incentivized to blow out the zero-miles 22s.” The longer you wait to alter over your design year, the more it.
hits your residual values in terms of harder grading,” Woodworth.
said.Some dealerships are providing below-MSRP discounts on vehicles that.
brought sticker-price-plus Monroney labels simply months before. And.
with consumer need 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 design year follows a.
foreseeable curve, peaking in spring as production hits its stride,.
and then descending in summer throughout the yearly selldown and the.
design year shifts in September and October. Supply chain.
turmoil has made it difficult for some automakers to follow.
tradition.That stated, with particular components of the supply chain still in.
flux, it may make sense for making continuity to continue.
If a 2023 minor model change consists of a part, constructing 2022 models.
that is not readily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 small model.
modification is still increase. The exact same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their underpinnings with the Escape.
platform.Remaining 2022 systems are frequently specific to certain models. In.
the marketplace 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 waiting for a 2023.
freshening – the national mbusa.com website 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 designs still advertised the week ending December.
4, while Lincoln represented 22% share of leftover luxury.
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 design showing up. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain missteps also are impacting stocks in other.
methods. Tens of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing out on essential parts, and have been gathering in parking area.
near their particular factories until they can be launched. On top.
of those unfinished systems, Ford dealers had nearly as lots of F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost units finally receive their required parts.
and get in wholesale inventory – Ford hopes it will happen by the.
end of December – that will add to the pressure to clear out the.
22 models at the dealership level.The integrated black-swan events of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interfered with.
standard production and supply standards – the most recent downstream.
effect being the overrun of prior model-year production and.
stock. How the market can recuperate to its routine cadence.
depends upon its flexibility to these continued disruptions.