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

For all the talk of low stocks, and vehicle dealers adding
” market modifications” on top of MSRP, there were almost a.
half-million units of leftover 2022 model year lorries still.
promoted for sale in the United States heading into the first.
weekend of December. That is on top of the 2023 cars that have.
been showing up on dealership lots.According to S&P Global Mobilitys analysis of United States dealership.
advertised inventory data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models marketed as.
offered for sale the week ending December 4. Those four brands.
represent 71% of 2022 promoted inventory noted by mainstream.
brand dealerships – and 66% of all dealer-advertised inventory when.
consisting of high-end marques.Among luxury brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 automobiles in dealership promoted inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers typically alleviate off production in late.
summer to transition to the new model year, and clear out the last.
of their old designs by Christmas, particular car manufacturers really have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, stock control is not as careful as it.
used to be.” Is running old inventories into the new design year a bad thing?
It can be for car manufacturers, however it could spell retail relief for.
customers. With 22 designs bring the stigma of being “older” -.
even if the 2023 model is the same – that can imply 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 residual worths in regards to harder grading,” Woodworth.
said.Some dealerships are offering below-MSRP discounts on vehicles that.
brought sticker-price-plus Monroney labels simply months before. And.
with consumer demand 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 descending in summertime throughout the yearly selldown and the.
model year shifts in September and October. But supply chain.
turmoil has made it impossible for some car manufacturers to follow.
tradition.That said, with specific aspects of the supply chain still in.
flux, it might make good sense for producing continuity to continue.
constructing 2022 models if a 2023 minor design change includes a part.
that is not readily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealers from its Louisville factory, as the 2023 minor model.
modification is still increase. The very same continuation of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically particular to certain designs. In.
the marketplace for a high-end SUV? The designs with the greatest staying.
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 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 remaining 22 models still advertised the week ending December.
4, while Lincoln accounted for 22% share of leftover luxury.
22s. That stated, Mercedes dealers have done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model getting here. And other key Mercedes volume designs – GLE,.
S-Class, and C-Class – are mainly represented by 2023 model.
production.Supply chain hiccups likewise are affecting stocks in other.
methods. 10s of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing important parts, and have been gathering in parking lots.
near their respective factories till they can be released. On top.
of those incomplete units, Ford dealerships had nearly as numerous F-150s.
promoted the week ending December 4 as they carried out in August in.
September. When the ghost units lastly get 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 clear out the.
22 models at the dealership level.The integrated black-swan events of COVID, semiconductor.
scarcities, and the Russian invasion of Ukraine interfered with.
standard production and supply norms – the most current downstream.
effect being the overrun of prior model-year production and.
stock. How the industry can recover to its regular cadence.
depends on its adaptability to these continued interruptions.