This post was released 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 stocks, and automobile dealerships tacking
” market adjustments” on top of MSRP, there were nearly a.
half-million systems of leftover 2022 model year vehicles still.
Advertised for sale in the United States heading into the.
weekend of December. That is on top of the 2023 vehicles that have.
been arriving on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
promoted stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models promoted as.
offered for sale the week ending December 4. Those 4 brand names.
represent 71% of 2022 marketed inventory listed by mainstream.
brand dealers – and 66% of all dealer-advertised stock when.
including high-end marques.Among high-end brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 lorries in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally reduce off production in late.
summertime to shift to the new model year, and clear out the last.
of their old models by Christmas, certain automakers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually dropped,” stated Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip lack, inventory 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.
customers. With 22 models carrying the stigma of being “older” -.
even if the 2023 design is the same – that can indicate dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to change over your design year, the more it.
hits your recurring values in regards to harder grading,” Woodworth.
said.Some dealers are offering below-MSRP discount rates on lorries that.
carried sticker-price-plus Monroney labels simply months prior to. And.
with customer need waning due to external economic 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 after that descending in summer season throughout the annual selldown and the.
model year shifts in September and October. Supply chain.
mayhem has actually made it impossible for some automakers to follow.
tradition.That stated, with specific aspects of the supply chain still in.
flux, it may make good sense for making continuity to continue.
If a 2023 minor design change includes a part, building 2022 models.
that is not readily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 minor design.
change is still ramping up. The same continuation of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their underpinnings with the Escape.
platform.Remaining 2022 systems are frequently specific to certain designs. In.
the market for a luxury SUV? The designs with the highest staying.
2022 design year units 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 readily available on December 15 – and as such 2022 models are.
still in strong supply. Among luxury brands, Mercedes had 33% share.
of remaining 22 models still marketed the week ending December.
4, while Lincoln represented 22% share of remaining high-end.
22s. That said, Mercedes dealers have done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model arriving. And other key Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain missteps likewise are impacting inventories in other.
methods. Tens of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing vital parts, and have been collecting in parking area.
near their respective factories up until they can be launched. On top.
of those incomplete units, Ford dealers had almost as many F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost systems finally get their needed parts.
and get in wholesale stock – Ford hopes it will take place by the.
end of December – that will contribute to the pressure to clean out the.
22 designs at the dealership level.The integrated black-swan events of COVID, semiconductor.
lacks, and the Russian intrusion of Ukraine interfered with.
conventional production and supply norms – the most current downstream.
impact being the overrun of previous model-year production and.
stock. How the industry can recover to its routine cadence.
depends on its versatility to these continued interruptions.