For all the talk of low inventories, and car dealerships tacking
” market modifications” on top of MSRP, there were almost a.
half-million units of remaining 2022 design year vehicles still.
Marketed for sale in the United States heading into the.
weekend of December. That is on top of the 2023 lorries that have.
been getting here on dealership lots.According to S&P Global Mobilitys analysis of United States dealership.
marketed stock information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs marketed as.
available for sale the week ending December 4. Those four brand names.
account for 71% of 2022 promoted stock listed by mainstream.
brand dealerships – and 66% of all dealer-advertised stock when.
including luxury marques.Among high-end brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 automobiles in dealer marketed stock,.
according to the S&P Global Mobility analysis.While most automakers traditionally ease off production in late.
summer to transition to the brand-new design year, and clear out the last.
of their old models by Christmas, certain automakers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has receded,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip shortage, inventory control is not as careful as it.
utilized to be.” Is running old inventories into the brand-new model year a bad thing?
It can be for car manufacturers, however it could spell retail relief for.
consumers. With 22 designs carrying the stigma of being “older” -.
even if the 2023 model is unchanged – that can suggest dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your model year, the more it.
hits your residual values in regards to harder grading,” Woodworth.
said.Some dealerships are using below-MSRP discounts on cars that.
carried sticker-price-plus Monroney labels simply months prior to. And.
with consumer need 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.
predictable curve, peaking in spring as production hits its stride,.
and then coming down in summer during the yearly selldown and the.
model year transitions in September and October. 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 sense for manufacturing connection to continue.
If a 2023 small design change includes a part, constructing 2022 designs.
that is not easily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 small model.
change is still ramping up. The same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to certain models. In.
the market for a luxury SUV? The models with the greatest staying.
2022 model year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
freshening – the nationwide mbusa.com website still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 models are.
still in strong supply. Among high-end brand names, Mercedes had 33% share.
of remaining 22 designs still advertised the week ending December.
4, while Lincoln accounted for 22% share of remaining luxury.
22s. That said, Mercedes dealers have actually done a strong task of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model getting here. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain hiccups also are affecting stocks in other.
ways. 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 car park.
near their respective factories till they can be released. On top.
of those unfinished systems, Ford dealerships had nearly as lots of F-150s.
promoted the week ending December 4 as they performed in August in.
September. When the ghost units lastly receive their needed parts.
and go into wholesale stock – Ford hopes it will take place by the.
end of December – that will contribute to the pressure to clear out the.
22 models at the dealer level.The combined black-swan occasions of COVID, semiconductor.
scarcities, and the Russian invasion of Ukraine interrupted.
standard production and supply norms – the most recent 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 disruptions.
This article was released by S&P Global Mobility and not by S&P Global Ratings, which is an independently managed division of S&P Global.