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

For all the talk of low stocks, and cars and truck dealers adding
” market modifications” on top of MSRP, there were nearly a.
half-million units of remaining 2022 model year cars still.
advertised for sale in the United States heading into the first.
weekend of December. That is on top of the 2023 cars that have.
been showing up on dealer lots.According to S&P Global Mobilitys analysis of US dealer.
promoted inventory information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models marketed as.
offered for sale the week ending December 4. Those four brand names.
account for 71% of 2022 marketed stock listed by mainstream.
brand dealers – and 66% of all dealer-advertised stock when.
consisting of luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 automobiles in dealership advertised stock,.
according to the S&P Global Mobility analysis.While most automakers typically alleviate 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 really have.
seen their 2022 inventories increase in October and November.” Model year discipline has actually dropped,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip shortage, stock control is not as meticulous as it.
utilized to be.” Is running old stocks into the new design year a bad thing?
It can be for automakers, but it might spell retail relief for.
customers. With 22 models carrying the stigma of being “older” -.
even if the 2023 model is the same – that can indicate dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your design year, the more it.
hits your recurring values in terms of tougher grading,” Woodworth.
said.Some dealers are offering below-MSRP discounts on lorries that.
carried sticker-price-plus Monroney labels just months before. And.
with consumer demand 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.
predictable curve, peaking in spring as production strikes its stride,.
and then descending in summer during the annual selldown and the.
model year shifts in September and October. Supply chain.
turmoil has actually made it impossible for some car manufacturers to follow.
tradition.That said, with specific elements of the supply chain still in.
flux, it might make sense for making continuity to continue.
building 2022 models if a 2023 minor design change includes a part.
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 design.
change is still ramping up. The same continuation of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to specific models. In.
the market for a luxury 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 awaiting 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. Amongst luxury brands, Mercedes had 33% share.
of remaining 22 models still marketed the week ending December.
4, while Lincoln accounted for 22% share of remaining high-end.
22s. That stated, Mercedes dealerships have actually done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model getting here. And other essential Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain hiccups likewise are affecting stocks in other.
ways. Tens of thousands of so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing vital parts, and have been gathering in car park.
near their respective factories till they can be launched. On top.
of those incomplete units, Ford dealers had almost as lots of F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost systems lastly receive their required parts.
and enter wholesale inventory – Ford hopes it will take place by the.
end of December – that will add to the pressure to clear out the.
22 designs at the dealership level.The integrated black-swan events of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine interfered with.
standard manufacturing and supply norms – the current downstream.
effect being the overrun of prior model-year production and.
stock. How the industry can recuperate to its regular cadence.
depends on its flexibility to these continued disruptions.