This short 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 vehicle dealers tacking
” market modifications” on top of MSRP, there were nearly a.
half-million units of leftover 2022 model year cars still.
promoted 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 information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs advertised as.
readily available for sale the week ending December 4. Those 4 brands.
account for 71% of 2022 promoted inventory listed by mainstream.
brand dealers – and 66% of all dealer-advertised stock when.
consisting of high-end marques.Among high-end brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 vehicles in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers typically alleviate off production in late.
summertime to transition to the brand-new design year, and clear out the last.
of their old designs by Christmas, specific car manufacturers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has dropped,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip lack, inventory control is not as meticulous as it.
utilized to be.” Is running old inventories into the brand-new model year a bad thing?
It can be for automakers, but it could spell retail relief for.
consumers. With 22 designs bring the preconception of being “older” -.
even if the 2023 model is the same – 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 recurring values in regards to harder grading,” Woodworth.
said.Some dealers are providing below-MSRP discounts on cars that.
brought sticker-price-plus Monroney labels just months before. And.
with consumer need subsiding 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 model year follows a.
predictable curve, peaking in spring as production hits its stride,.
and after that descending in summer throughout the annual selldown and the.
model year transitions in September and October. However supply chain.
chaos has actually made it difficult for some car manufacturers to follow.
tradition.That said, with specific elements of the supply chain still in.
flux, it might make sense for producing connection to continue.
If a 2023 minor design modification consists of a part, developing 2022 designs.
that is not readily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small design.
modification is still increase. The same continuation of late.
production 22 models applies 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 specific models. In.
the market for a luxury SUV? The designs with the greatest staying.
2022 design 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 site still wasnt listing.
the 2023 as available on December 15 – and as such 2022 designs are.
still in strong supply. Among luxury brand names, Mercedes had 33% share.
of remaining 22 models still promoted the week ending December.
4, while Lincoln represented 22% share of leftover high-end.
22s. That said, Mercedes dealers have done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model getting here. And other essential Mercedes volume models – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain hiccups likewise are impacting 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 however were.
missing out on crucial parts, and have been gathering in parking area.
near their particular factories till they can be released. On top.
of those unfinished systems, Ford dealers had nearly as numerous F-150s.
promoted the week ending December 4 as they did in August in.
September. When the ghost units finally receive their needed parts.
and get in wholesale inventory – Ford hopes it will happen by the.
end of December – that will include to the pressure to clear out the.
22 designs at the dealer level.The integrated black-swan events of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interrupted.
traditional production and supply standards – the current downstream.
impact being the overrun of previous model-year production and.
inventory. How the market can recover to its routine cadence.
depends on its versatility to these continued disruptions.