Plenty of ’22 models still on the shelf

Plenty of ’22 models still on the shelf

For all the talk of low inventories, and vehicle dealers adding
” market changes” on top of MSRP, there were nearly a.
half-million systems of leftover 2022 model year lorries still.
promoted for sale in the United States heading into the very first.
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 United States dealer.
advertised stock data, mainstream brand names 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 brands.
account for 71% of 2022 advertised stock listed by mainstream.
brand name dealerships – and 66% of all dealer-advertised stock when.
including high-end marques.Among luxury brands, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 lorries in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most car manufacturers generally relieve off production in late.
summer to shift to the new model year, and clear out the last.
of their old models by Christmas, specific automakers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has dropped,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as careful as it.
used to be.” Is running old inventories into the brand-new model year a bad thing?
It can be for automakers, however it might spell retail relief for.
customers. With 22 models carrying the stigma of being “older” -.
even if the 2023 design is unchanged – that can imply dealers are.
incentivized to blow 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 dealerships are offering below-MSRP discounts on cars that.
carried sticker-price-plus Monroney labels just months before. And.
with consumer need subsiding 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 design year follows a.
predictable curve, peaking in spring as production hits its stride,.
and after that coming down in summer season during the annual selldown and the.
design year transitions in September and October. Supply chain.
mayhem has made it difficult for some car manufacturers to follow.
tradition.That stated, with specific components of the supply chain still in.
flux, it might make sense for manufacturing connection to continue.
developing 2022 models if a 2023 minor model change 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 minor design.
modification is still increase. The same extension of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their foundations with the Escape.
platform.Remaining 2022 units are frequently particular to certain designs. 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.
freshening – the nationwide website still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 models are.
still in strong supply. Among high-end brand names, Mercedes had 33% share.
of staying 22 models still advertised the week ending December.
4, while Lincoln represented 22% share of remaining high-end.
22s. That said, Mercedes dealers have done a strong task of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 design getting here. And other crucial Mercedes volume models – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain hiccups also are impacting inventories in other.
ways. 10s of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line however were.
missing important parts, and have been collecting in car park.
near their respective factories up until they can be released. On top.
of those unfinished systems, Ford dealers had almost as many F-150s.
promoted 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 stock – Ford hopes it will happen by the.
end of December – that will contribute to the pressure to clear out the.
22 designs at the dealer level.The integrated black-swan events of COVID, semiconductor.
lacks, and the Russian intrusion of Ukraine disrupted.
traditional manufacturing and supply norms – the most recent downstream.
effect 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 interruptions.

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

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