For all the talk of low stocks, and automobile dealerships adding
” market modifications” on top of MSRP, there were almost a.
half-million systems of leftover 2022 design year vehicles still.
Advertised for sale in the United States heading into the.
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.
advertised stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models promoted as.
available for sale the week ending December 4. Those four brand names.
represent 71% of 2022 advertised stock noted by mainstream.
brand dealers – and 66% of all dealer-advertised inventory when.
consisting of high-end marques.Among high-end brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 automobiles in dealer advertised inventory,.
according to the S&P Global Mobility analysis.While most automakers traditionally reduce off production in late.
summertime to shift to the new design year, and clear out the last.
of their old designs by Christmas, particular car manufacturers 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, stock 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, however it could spell retail relief for.
customers. With 22 designs bring the stigma of being “older” -.
even if the 2023 design is unchanged – that can mean dealerships are.
incentivized to blow 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 tougher grading,” Woodworth.
said.Some dealers are offering below-MSRP discounts on lorries that.
carried sticker-price-plus Monroney labels simply months prior to. And.
with customer 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.
foreseeable curve, peaking in spring as production strikes its stride,.
and then coming down in summertime throughout the annual selldown and the.
design year shifts in September and October. However supply chain.
mayhem has actually made it impossible for some car manufacturers to follow.
tradition.That said, with particular elements of the supply chain still in.
flux, it might make good sense for making connection to continue.
constructing 2022 designs if a 2023 small model change includes 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 model.
change is still increase. The very 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 systems are often particular to specific designs. In.
the market for a luxury SUV? The designs with the highest remaining.
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 national 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 brand names, Mercedes had 33% share.
of remaining 22 designs still marketed the week ending December.
4, while Lincoln accounted for 22% share of remaining luxury.
22s. That said, Mercedes dealers have actually done a strong task of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model arriving. And other key Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain missteps likewise are impacting inventories in other.
ways. 10s of thousands of so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on vital parts, and have been gathering in parking lots.
near their particular factories up until they can be launched. On top.
of those unfinished systems, Ford dealerships had almost 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 go into wholesale stock – Ford hopes it will occur by the.
end of December – that will include to the pressure to clear out the.
22 models at the dealership level.The combined black-swan events of COVID, semiconductor.
lacks, and the Russian intrusion of Ukraine interfered with.
traditional production and supply standards – the current downstream.
effect being the overrun of prior model-year production and.
inventory. How the market can recuperate to its routine cadence.
depends upon its adaptability to these continued interruptions.
This article was released by S&P Global Mobility and not by S&P Global Ratings, which is a separately handled department of S&P Global.