For all the talk of low stocks, and cars and truck dealers adding
” market adjustments” on top of MSRP, there were almost a.
half-million units of leftover 2022 model year cars still.
Marketed for sale in the United States heading into the.
weekend of December. That is on top of the 2023 automobiles that have.
been getting here on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
marketed inventory information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs marketed as.
offered for sale the week ending December 4. Those 4 brand names.
represent 71% of 2022 advertised stock noted by mainstream.
brand name dealers – and 66% of all dealer-advertised stock when.
consisting of high-end marques.Among luxury brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 vehicles in dealer advertised stock,.
according to the S&P Global Mobility analysis.While most automakers traditionally reduce off production in late.
summer to shift to the new model 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 ebbed,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip lack, stock control is not as meticulous as it.
utilized to be.” Is running old inventories into the new design year a bad thing?
It can be for car manufacturers, but it might spell retail relief for.
customers. With 22 designs carrying the preconception of being “older” -.
even if the 2023 design is the same – that can mean dealers are.
incentivized to blow 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 harder grading,” Woodworth.
said.Some dealerships are providing below-MSRP discount rates on automobiles that.
brought sticker-price-plus Monroney labels simply months before. And.
with customer 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 design year follows a.
foreseeable curve, peaking in spring as production hits its stride,.
and after that coming down in summer during the yearly selldown and the.
design year shifts in September and October. But supply chain.
mayhem has actually made it difficult for some car manufacturers to follow.
tradition.That said, with specific elements of the supply chain still in.
flux, it may make good sense for manufacturing continuity to continue.
building 2022 models if a 2023 minor model modification includes a part.
that is not readily offered, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 minor model.
modification is still ramping up. The same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their foundations with the Escape.
platform.Remaining 2022 units are typically specific to certain designs. In.
the market for a luxury SUV? The models with the greatest remaining.
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 site still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 designs are.
still in strong supply. Among luxury brand names, Mercedes had 33% share.
of staying 22 designs 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 stocks from mid-summer in anticipation of the.
23 design getting here. And other key Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 model.
production.Supply chain hiccups also are impacting inventories 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 parking area.
near their respective factories until they can be released. On top.
of those incomplete units, Ford dealers had almost as numerous F-150s.
advertised the week ending December 4 as they carried out in August in.
September. When the ghost units lastly get their needed parts.
and enter wholesale inventory – Ford hopes it will occur by the.
end of December – that will contribute to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan events of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interrupted.
conventional production and supply standards – the most recent downstream.
impact being the overrun of previous model-year production and.
inventory. How the industry can recover to its routine cadence.
depends on its flexibility to these continued disruptions.

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