This article was published by S&P Global Mobility and not by S&P Global Ratings, which is an independently handled department of S&P Global.
For all the talk of low inventories, and vehicle dealerships tacking
” market changes” on top of MSRP, there were almost a.
half-million systems of leftover 2022 design year automobiles still.
Promoted for sale in the United States heading into the.
weekend of December. That is on top of the 2023 vehicles that have.
been arriving on dealer lots.According to S&P Global Mobilitys analysis of US dealership.
promoted stock information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models advertised as.
readily available for sale the week ending December 4. Those 4 brands.
represent 71% of 2022 promoted inventory listed by mainstream.
brand name dealers – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 cars in dealer marketed stock,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally relieve off production in late.
summertime to transition to the brand-new model year, and clear out the last.
of their old designs by Christmas, specific car manufacturers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” stated Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip lack, stock control is not as careful as it.
used to be.” Is running old inventories into the brand-new model year a bad thing?
It can be for car manufacturers, however it might spell retail relief for.
customers. With 22 designs carrying the preconception of being “older” -.
even if the 2023 design is the same – that can suggest dealerships are.
incentivized to blow out the zero-miles 22s.” The longer you wait to change over your design year, the more it.
hits your recurring values in terms of tougher grading,” Woodworth.
said.Some dealerships are offering below-MSRP discount rates on cars that.
brought sticker-price-plus Monroney labels simply months prior to. And.
with consumer demand 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 design year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and then coming down in summer season during the annual selldown and the.
model year shifts in September and October. Supply chain.
chaos has made it impossible for some car manufacturers to follow.
tradition.That stated, with certain aspects of the supply chain still in.
flux, it might make good sense for producing connection to continue.
developing 2022 designs if a 2023 small model change consists of a part.
that is not easily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 minor model.
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 underpinnings with the Escape.
platform.Remaining 2022 systems are typically particular to specific designs. In.
the market for a high-end SUV? The models with the highest staying.
2022 design year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
freshening – the national mbusa.com site still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 designs are.
still in strong supply. Among high-end brands, Mercedes had 33% share.
of remaining 22 models still advertised the week ending December.
4, while Lincoln represented 22% share of remaining high-end.
22s. That said, Mercedes dealers have actually done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design showing up. And other crucial Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain hiccups also are impacting stocks in other.
methods. 10s of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on vital parts, and have been collecting in car park.
near their particular factories until they can be launched. On top.
of those incomplete systems, Ford dealerships had nearly as numerous F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost systems finally get their needed parts.
and get in wholesale stock – Ford hopes it will happen by the.
end of December – that will contribute to the pressure to clean out the.
22 models at the dealership level.The integrated black-swan occasions of COVID, semiconductor.
scarcities, and the Russian intrusion of Ukraine interfered with.
standard manufacturing and supply norms – the most recent downstream.
impact being the overrun of previous model-year production and.
stock. How the market can recuperate to its routine cadence.
depends on its adaptability to these continued disruptions.