For all the talk of low inventories, and automobile dealerships tacking
” market changes” on top of MSRP, there were nearly a.
half-million systems of remaining 2022 model year cars still.
promoted for sale in the United States heading into the first.
weekend of December. That is on top of the 2023 vehicles that have.
been getting here on dealer lots.According to S&P Global Mobilitys analysis of US dealership.
marketed inventory information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models promoted as.
available for sale the week ending December 4. Those 4 brand names.
represent 71% of 2022 advertised stock listed by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
consisting of high-end marques.Among luxury brands, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 lorries in dealer marketed inventory,.
according to the S&P Global Mobility analysis.While most automakers generally reduce off production in late.
summertime to shift to the brand-new model year, and clear out the last.
of their old models by Christmas, specific automakers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has lessened,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip shortage, stock control is not as precise as it.
used to be.” Is running old inventories into the new model year a bad thing?
It can be for automakers, but it could spell retail relief for.
consumers. With 22 designs bring the stigma of being “older” -.
even if the 2023 design is the same – that can suggest dealers are.
incentivized to blow out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your recurring values in terms of tougher grading,” Woodworth.
said.Some dealers are using below-MSRP discounts on vehicles that.
brought sticker-price-plus Monroney labels just months prior to. And.
with consumer demand waning due to external financial forces such as.
inflation and recession-related layoffs, the pressure to move the.
metal increases.Usually, the stock arc for each model year follows a.
foreseeable curve, peaking in spring as production strikes its stride,.
and then descending in summertime throughout the yearly selldown and the.
model year shifts in September and October. Supply chain.
chaos 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 sense for manufacturing continuity to continue.
building 2022 models if a 2023 small model change includes a part.
that is not easily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small model.
change is still ramping up. The same extension of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their foundations with the Escape.
platform.Remaining 2022 systems are frequently specific to certain designs. In.
the market for a high-end SUV? The designs with the greatest staying.
2022 model year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
refreshing – the national 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 brand names, Mercedes had 33% share.
of remaining 22 models still promoted the week ending December.
4, while Lincoln accounted for 22% share of leftover luxury.
22s. That stated, Mercedes dealers have done a strong task of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model showing up. And other essential Mercedes volume designs – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain hiccups also are impacting stocks in other.
methods. Tens of thousands of so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line but were.
missing out on crucial parts, and have actually been gathering in parking area.
near their particular factories till they can be released. On top.
of those incomplete systems, Ford dealerships had almost as lots of 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 inventory – Ford hopes it will happen by the.
end of December – that will add to the pressure to clear out the.
22 models at the dealer level.The integrated black-swan occasions of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine interfered with.
traditional manufacturing and supply standards – the most recent downstream.
effect being the overrun of previous model-year production and.
inventory. How the market can recover to its routine cadence.
depends upon its versatility to these continued disturbances.
This post was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.