This post 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 inventories, and car dealers tacking
” market adjustments” on top of MSRP, there were almost a.
half-million units of remaining 2022 model year vehicles still.
promoted for sale in the United States heading into the very first.
weekend of December. That is on top of the 2023 automobiles that have.
been showing up on dealership lots.According to S&P Global Mobilitys analysis of US dealer.
marketed inventory data, 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 four brand names.
represent 71% of 2022 promoted stock listed by mainstream.
brand dealers – and 66% of all dealer-advertised inventory when.
including high-end marques.Among luxury brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 cars in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most automakers typically alleviate off production in late.
summer to shift 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 stocks increase in October and November.” Model year discipline has actually lessened,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as careful as it.
used to be.” Is running old stocks into the new design year a bad thing?
It can be for car manufacturers, however it might spell retail relief for.
customers. With 22 designs carrying the stigma of being “older” -.
even if the 2023 design is the same – that can imply 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 regards to tougher grading,” Woodworth.
said.Some dealerships are providing below-MSRP discount rates on lorries that.
brought sticker-price-plus Monroney labels simply months before. And.
with customer demand subsiding due to external financial forces such as.
inflation and recession-related layoffs, the pressure to move the.
metal increases.Usually, the stock arc for each model year follows a.
foreseeable curve, peaking in spring as production strikes its stride,.
and then descending in summer during the yearly selldown and the.
design year shifts in September and October. Supply chain.
chaos has made it impossible for some automakers to follow.
tradition.That stated, with particular elements of the supply chain still in.
flux, it may make sense for producing continuity to continue.
developing 2022 designs if a 2023 small model modification includes a part.
that is not easily offered, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 minor design.
modification is still ramping up. The exact same continuation of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their underpinnings with the Escape.
platform.Remaining 2022 systems are often specific to particular models. In.
the market for a luxury SUV? The designs with the greatest staying.
2022 model year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
refreshing – the national 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 brands, Mercedes had 33% share.
of staying 22 designs still promoted the week ending December.
4, while Lincoln represented 22% share of leftover high-end.
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 arriving. And other essential Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 design.
production.Supply chain hiccups likewise are impacting inventories in other.
methods. 10s of thousands of so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing out on essential parts, and have been collecting in parking lots.
near their respective factories till they can be released. On top.
of those incomplete systems, Ford dealerships had nearly as lots of F-150s.
marketed the week ending December 4 as they did in August in.
September. When the ghost units finally receive their required parts.
and get in wholesale stock – Ford hopes it will occur by the.
end of December – that will include to the pressure to clear out the.
22 models at the dealer level.The combined black-swan occasions of COVID, semiconductor.
lacks, and the Russian intrusion of Ukraine disrupted.
standard manufacturing and supply standards – the current downstream.
effect being the overrun of previous model-year production and.
inventory. How the industry can recuperate to its routine cadence.
depends upon its flexibility to these continued disruptions.