For all the talk of low inventories, and vehicle dealers adding
” market modifications” on top of MSRP, there were nearly a.
half-million units of remaining 2022 design year automobiles 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 getting here on dealership lots.According to S&P Global Mobilitys analysis of US dealer.
marketed stock data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models advertised as.
offered for sale the week ending December 4. Those four brands.
account for 71% of 2022 marketed inventory listed by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brands, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 vehicles in dealership advertised inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally reduce off production in late.
summer season to shift to the new model year, and clear out the last.
of their old designs by Christmas, specific car manufacturers really have.
seen their 2022 inventories increase in October and November.” Model year discipline has dropped,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip scarcity, stock control is not as meticulous as it.
used to be.” Is running old stocks into the new model year a bad thing?
It can be for automakers, but it could spell retail relief for.
customers. With 22 models carrying the preconception of being “older” -.
even if the 2023 design is the same – that can suggest dealerships are.
incentivized to blow out the zero-miles 22s.” The longer you wait to alter over your model year, the more it.
hits your residual values in regards to harder grading,” Woodworth.
said.Some dealers are providing below-MSRP discounts on vehicles that.
carried sticker-price-plus Monroney labels just months prior to. And.
with customer need waning 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.
foreseeable curve, peaking in spring as production hits its stride,.
and after that descending in summertime during the yearly selldown and the.
design year transitions in September and October. However supply chain.
chaos has made it impossible for some automakers to follow.
tradition.That stated, with certain components of the supply chain still in.
flux, it might make sense for making continuity to continue.
developing 2022 designs if a 2023 minor model change consists of a part.
that is not readily offered, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small design.
change is still increase. The exact same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their underpinnings with the Escape.
platform.Remaining 2022 systems are frequently specific to specific models. In.
the market for a luxury SUV? The models with the highest remaining.
2022 design year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
refreshing – the nationwide mbusa.com website still wasnt listing.
the 2023 as available on December 15 – and as such 2022 models are.
still in strong supply. Among luxury brands, Mercedes had 33% share.
of staying 22 designs still promoted the week ending December.
4, while Lincoln accounted for 22% share of remaining luxury.
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 arriving. And other key Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain hiccups likewise are affecting stocks in other.
ways. Tens of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing crucial parts, and have been collecting in car park.
near their particular factories until they can be released. On top.
of those incomplete units, Ford dealerships had nearly as many F-150s.
promoted the week ending December 4 as they performed in August in.
September. When the ghost units finally receive their required parts.
and enter wholesale inventory – Ford hopes it will happen by the.
end of December – that will contribute to the pressure to clean out the.
22 models at the dealership level.The integrated black-swan occasions of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interfered with.
standard production and supply standards – the current downstream.
impact being the overrun of previous model-year production and.
inventory. How the market can recover to its regular cadence.
depends on its versatility to these continued disturbances.
This post was published by S&P Global Mobility and not by S&P Global Ratings, which is an independently handled division of S&P Global.