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

For all the talk of low inventories, and automobile dealerships adding
” market modifications” on top of MSRP, there were almost a.
half-million units of remaining 2022 design year automobiles still.
Promoted for sale in the United States heading into the.
weekend of December. That is on top of the 2023 lorries that have.
been getting here on dealership lots.According to S&P Global Mobilitys analysis of United States dealership.
promoted inventory information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs marketed as.
readily available for sale the week ending December 4. Those four brand names.
represent 71% of 2022 marketed inventory noted by mainstream.
brand dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 automobiles in dealer promoted stock,.
according to the S&P Global Mobility analysis.While most car manufacturers generally alleviate off production in late.
summer to shift to the new design year, and clear out the last.
of their old designs by Christmas, certain automakers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has dropped,” stated Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as precise as it.
utilized to be.” Is running old inventories into the brand-new design year a bad thing?
It can be for car manufacturers, however it might spell retail relief for.
consumers. With 22 designs carrying the stigma of being “older” -.
even if the 2023 design is unchanged – that can mean dealerships 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 lorries that.
carried sticker-price-plus Monroney labels just months prior to. And.
with customer demand waning 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 model year follows a.
foreseeable curve, peaking in spring as production hits its stride,.
and then coming down in summer throughout the annual selldown and the.
model year transitions in September and October. However supply chain.
turmoil has actually made it impossible for some automakers to follow.
tradition.That stated, with certain aspects of the supply chain still in.
flux, it may make sense for producing connection to continue.
building 2022 designs if a 2023 minor model modification consists of a part.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small design.
modification is still increase. The exact same extension of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their foundations with the Escape.
platform.Remaining 2022 systems are typically specific to specific models. In.
the market for a luxury SUV? The designs with the greatest remaining.
2022 design 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 website still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 designs 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 accounted for 22% share of remaining luxury.
22s. That said, Mercedes dealerships have actually done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model getting here. And other crucial Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain missteps also are impacting inventories in other.
methods. 10s of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing important parts, and have been collecting in parking area.
near their respective factories until they can be launched. On top.
of those incomplete systems, Ford dealerships had almost as numerous F-150s.
marketed the week ending December 4 as they carried out in August in.
September. When the ghost systems lastly receive their required parts.
and enter wholesale stock – Ford hopes it will occur by the.
end of December – that will add to the pressure to clean out the.
22 designs at the dealer level.The integrated black-swan occasions of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine interrupted.
traditional manufacturing and supply standards – the current downstream.
effect being the overrun of previous model-year production and.
inventory. How the industry can recover to its regular cadence.
depends on its adaptability to these continued disruptions.