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

For all the talk of low stocks, and car dealers adding
” market adjustments” on top of MSRP, there were nearly a.
half-million systems of leftover 2022 design year lorries still.
Advertised for sale in the United States heading into the.
weekend of December. That is on top of the 2023 lorries that have.
been arriving on dealer lots.According to S&P Global Mobilitys analysis of United States dealership.
advertised inventory information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models marketed as.
readily available for sale the week ending December 4. Those four brands.
represent 71% of 2022 promoted stock noted by mainstream.
brand dealerships – and 66% of all dealer-advertised inventory when.
including luxury marques.Among high-end brand names, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 cars in dealership advertised 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 models by Christmas, certain car manufacturers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has receded,” said Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, stock control is not as careful as it.
utilized to be.” Is running old inventories into the brand-new design year a bad thing?
It can be for car manufacturers, but it could spell retail relief for.
consumers. With 22 designs carrying the preconception of being “older” -.
even if the 2023 model is the same – that can indicate 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 worths in regards to tougher grading,” Woodworth.
said.Some dealers are providing below-MSRP discount rates on cars that.
carried sticker-price-plus Monroney labels simply months before. And.
with consumer 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 design year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and after that descending in summertime during the annual selldown and the.
design year transitions in September and October. Supply chain.
mayhem has made it impossible for some car manufacturers to follow.
tradition.That said, with certain elements of the supply chain still in.
flux, it may make good sense for making connection to continue.
If a 2023 small design modification consists of a part, building 2022 models.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 minor design.
modification is still ramping up. The very same extension of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share numerous of their foundations with the Escape.
platform.Remaining 2022 units are frequently specific to certain designs. In.
the marketplace for a luxury SUV? The designs with the highest staying.
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 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 high-end brands, Mercedes had 33% share.
of staying 22 designs still advertised the week ending December.
4, while Lincoln represented 22% share of leftover high-end.
22s. That stated, Mercedes dealers have done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model showing up. And other key Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain missteps likewise are affecting inventories in other.
ways. 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 collecting in car park.
near their respective factories till they can be released. On top.
of those unfinished systems, Ford dealers had almost as many F-150s.
promoted the week ending December 4 as they did in August in.
September. When the ghost units lastly receive their needed 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 occasions of COVID, semiconductor.
shortages, and the Russian invasion of Ukraine interfered with.
standard manufacturing and supply norms – the newest downstream.
impact being the overrun of previous model-year production and.
inventory. How the industry can recuperate to its routine cadence.
depends on its versatility to these continued interruptions.