For all the talk of low stocks, and car dealerships adding
” market adjustments” on top of MSRP, there were nearly a.
half-million units of leftover 2022 design year lorries still.
Marketed for sale in the United States heading into the.
weekend of December. That is on top of the 2023 cars that have.
been getting here on dealership lots.According to S&P Global Mobilitys analysis of United States dealership.
advertised stock information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models promoted as.
available for sale the week ending December 4. Those four brands.
account for 71% of 2022 marketed 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 automobiles in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most automakers traditionally alleviate off production in late.
summer to shift to the new model year, and clear out the last.
of their old models by Christmas, particular car manufacturers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has actually ebbed,” stated Cheryl Woodworth,.
speaking with 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 car manufacturers, but it could spell retail relief for.
customers. With 22 models bring the stigma of being “older” -.
even if the 2023 model is the same – that can mean dealers 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 terms of harder grading,” Woodworth.
said.Some dealers are offering below-MSRP discounts on vehicles that.
brought sticker-price-plus Monroney labels simply months before. And.
with customer 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 model year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and after that coming down in summer during the yearly selldown and the.
model year transitions in September and October. However supply chain.
chaos has made it impossible for some automakers to follow.
tradition.That said, with certain aspects of the supply chain still in.
flux, it may make sense for making continuity to continue.
If a 2023 small model modification consists of a part, building 2022 models.
that is not easily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealers from its Louisville factory, as the 2023 minor design.
change is still increase. The exact same extension of late.
production 22 models applies to the Ford Bronco Sport and Lincoln.
Corsair, which share many of their underpinnings with the Escape.
platform.Remaining 2022 units are frequently particular to particular designs. In.
the marketplace 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.
refreshing – the nationwide mbusa.com site still wasnt listing.
the 2023 as readily available on December 15 – and as such 2022 models are.
still in strong supply. Amongst luxury brands, Mercedes had 33% share.
of staying 22 models still advertised the week ending December.
4, while Lincoln accounted for 22% share of leftover luxury.
22s. That stated, Mercedes dealerships have actually done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model showing up. And other essential Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain missteps also are affecting stocks in other.
methods. 10s of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line however were.
missing crucial parts, and have actually been collecting in parking lots.
near their respective factories until they can be launched. On top.
of those unfinished systems, Ford dealers had almost as numerous F-150s.
promoted the week ending December 4 as they did in August in.
September. When the ghost systems finally receive their required parts.
and go into wholesale stock – Ford hopes it will take place by the.
end of December – that will contribute to the pressure to clean out the.
22 models at the dealer level.The integrated black-swan events of COVID, semiconductor.
scarcities, and the Russian intrusion of Ukraine disrupted.
traditional manufacturing and supply standards – the latest downstream.
effect being the overrun of prior model-year production and.
inventory. How the industry can recuperate to its regular cadence.
depends upon its versatility to these continued disruptions.

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