This short 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.

For all the talk of low inventories, and car dealers tacking
” market modifications” on top of MSRP, there were nearly a.
half-million units of remaining 2022 design year lorries still.
Promoted 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 US dealer.
marketed inventory information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models promoted as.
readily available for sale the week ending December 4. Those four brands.
account for 71% of 2022 promoted inventory listed by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 cars in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most automakers traditionally alleviate off production in late.
summertime to transition to the brand-new design year, and clear out the last.
of their old models by Christmas, particular automakers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually lessened,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as meticulous as it.
utilized to be.” Is running old inventories into the new model year a bad thing?
It can be for automakers, but it might spell retail relief for.
consumers. With 22 models bring the preconception of being “older” -.
even if the 2023 model is unchanged – that can indicate dealers are.
incentivized to burn out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your recurring worths in terms of harder grading,” Woodworth.
said.Some dealers are offering below-MSRP discount rates on automobiles that.
carried sticker-price-plus Monroney labels just 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 stock arc for each model year follows a.
predictable curve, peaking in spring as production hits its stride,.
and then descending in summertime throughout the yearly selldown and the.
design year transitions in September and October. But supply chain.
mayhem has actually made it impossible for some car manufacturers to follow.
tradition.That said, with specific components of the supply chain still in.
flux, it may make sense for manufacturing continuity to continue.
constructing 2022 designs if a 2023 small design modification consists of 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 model.
change is still ramping up. The same extension of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their foundations with the Escape.
platform.Remaining 2022 systems are typically particular to specific designs. In.
the marketplace for a high-end SUV? The designs with the greatest remaining.
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 offered on December 15 – and as such 2022 designs are.
still in strong supply. Among high-end brand names, Mercedes had 33% share.
of remaining 22 models still marketed the week ending December.
4, while Lincoln represented 22% share of remaining luxury.
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 key Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 design.
production.Supply chain missteps likewise are affecting inventories in other.
methods. Tens of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing crucial parts, and have been gathering in parking area.
near their respective factories till they can be launched. On top.
of those incomplete systems, Ford dealerships had almost as lots of F-150s.
promoted the week ending December 4 as they carried out in August in.
September. When the ghost systems finally get their needed parts.
and go into wholesale inventory – Ford hopes it will occur by the.
end of December – that will add to the pressure to clear out the.
22 models at the dealer level.The integrated black-swan occasions of COVID, semiconductor.
shortages, and the Russian invasion of Ukraine disrupted.
traditional production and supply norms – the most 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 adaptability to these continued interruptions.