This post was published by S&P Global Mobility and not by S&P Global Ratings, which is an individually handled department of S&P Global.

For all the talk of low inventories, and vehicle dealerships tacking
” market adjustments” on top of MSRP, there were almost a.
half-million units of leftover 2022 model year cars still.
Advertised for sale in the United States heading into the.
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 dealership.
marketed stock data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs advertised as.
available for sale the week ending December 4. Those four brand names.
account for 71% of 2022 marketed stock listed by mainstream.
brand name dealerships – and 66% of all dealer-advertised stock when.
consisting of luxury marques.Among luxury brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 automobiles in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most car manufacturers typically reduce off production in late.
summer to transition to the brand-new design year, and clear out the last.
of their old designs by Christmas, particular automakers really have.
seen their 2022 stocks increase in October and November.” Model year discipline has receded,” stated Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as precise as it.
used to be.” Is running old stocks into the new design year a bad thing?
It can be for automakers, however it might spell retail relief for.
consumers. With 22 designs bring the stigma of being “older” -.
even if the 2023 design is unchanged – that can imply 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 residual worths in regards to harder grading,” Woodworth.
said.Some dealerships are providing below-MSRP discounts on cars that.
carried 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 design year follows a.
predictable curve, peaking in spring as production hits its stride,.
and after that descending in summer season during the yearly selldown and the.
model year shifts in September and October. However supply chain.
mayhem has made it impossible for some car manufacturers to follow.
tradition.That said, with specific aspects of the supply chain still in.
flux, it may make sense for manufacturing continuity to continue.
constructing 2022 models if a 2023 small model modification consists of a part.
that is not easily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 minor model.
change is still ramping up. The very same continuation of late.
production 22 models applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their foundations with the Escape.
platform.Remaining 2022 units are typically specific to certain designs. In.
the marketplace for a luxury SUV? The models with the highest remaining.
2022 model year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
refreshing – the national mbusa.com site still wasnt listing.
the 2023 as available on December 15 – and as such 2022 models are.
still in strong supply. Amongst luxury brand names, Mercedes had 33% share.
of remaining 22 models still advertised the week ending December.
4, while Lincoln represented 22% share of leftover luxury.
22s. That said, Mercedes dealerships have done a strong task of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model arriving. And other crucial Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain hiccups likewise are affecting inventories in other.
ways. Tens of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing important parts, and have actually been gathering in parking lots.
near their respective factories until they can be launched. On top.
of those unfinished systems, Ford dealers had nearly as numerous F-150s.
marketed the week ending December 4 as they carried out in August in.
September. When the ghost units finally receive their required parts.
and go into wholesale inventory – Ford hopes it will take place by the.
end of December – that will include to the pressure to clear out the.
22 models at the dealership level.The combined black-swan events of COVID, semiconductor.
scarcities, and the Russian intrusion of Ukraine interrupted.
traditional manufacturing and supply norms – the most recent downstream.
effect being the overrun of prior model-year production and.
stock. How the industry can recover to its regular cadence.
depends upon its versatility to these continued disruptions.