For all the talk of low stocks, and car dealers tacking
” market adjustments” on top of MSRP, there were almost a.
half-million systems of leftover 2022 model year vehicles still.
advertised for sale in the United States heading into the first.
weekend of December. That is on top of the 2023 vehicles that have.
been showing up on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
marketed stock information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models marketed as.
available for sale the week ending December 4. Those four brand names.
account for 71% of 2022 advertised stock listed by mainstream.
brand dealerships – and 66% of all dealer-advertised stock when.
including high-end marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 vehicles in dealer marketed inventory,.
according to the S&P Global Mobility analysis.While most automakers typically alleviate off production in late.
summer to transition to the new design year, and clear out the last.
of their old designs by Christmas, certain car manufacturers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually dropped,” said Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip lack, stock control is not as meticulous as it.
used to be.” Is running old inventories into the brand-new design 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 design is unchanged – that can suggest dealers 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 tougher grading,” Woodworth.
said.Some dealers are using below-MSRP discounts on vehicles that.
brought sticker-price-plus Monroney labels just months prior to. And.
with customer need waning 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 then descending in summer throughout the yearly selldown and the.
model year transitions in September and October. But supply chain.
chaos has actually made it difficult for some automakers to follow.
tradition.That said, with particular aspects of the supply chain still in.
flux, it may make good sense for manufacturing continuity to continue.
If a 2023 small model modification includes a part, constructing 2022 designs.
that is not readily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 minor design.
modification is still increase. The very same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their foundations with the Escape.
platform.Remaining 2022 systems are often particular to specific models. In.
the market for a luxury SUV? The models with the highest staying.
2022 model year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
refreshing – the nationwide mbusa.com website still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 models are.
still in strong supply. Amongst luxury brand names, Mercedes had 33% share.
of staying 22 models still marketed the week ending December.
4, while Lincoln accounted for 22% share of remaining high-end.
22s. That said, Mercedes dealerships have done a strong task of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design arriving. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain missteps likewise are affecting inventories 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 important parts, and have been collecting in car park.
near their respective factories till they can be released. On top.
of those unfinished units, Ford dealerships had almost as many F-150s.
promoted the week ending December 4 as they did in August in.
September. When the ghost systems finally receive their needed parts.
and enter 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 integrated black-swan events of COVID, semiconductor.
shortages, and the Russian invasion of Ukraine interrupted.
conventional production and supply standards – the current downstream.
effect being the overrun of previous model-year production and.
stock. How the industry can recover to its regular cadence.
depends on its adaptability to these continued disruptions.

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