This short 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 cars and truck dealerships adding
” market adjustments” on top of MSRP, there were nearly 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 cars that have.
been showing up on dealer lots.According to S&P Global Mobilitys analysis of United States dealer.
promoted stock information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 models marketed as.
available for sale the week ending December 4. Those 4 brand names.
account for 71% of 2022 promoted inventory noted by mainstream.
brand name dealers – 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 vehicles in dealer promoted inventory,.
according to the S&P Global Mobility analysis.While most automakers traditionally ease off production in late.
summer to transition to the new model year, and clear out the last.
of their old models by Christmas, certain car manufacturers actually 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 lack, stock control is not as precise as it.
utilized to be.” Is running old stocks into the brand-new model year a bad thing?
It can be for car manufacturers, however it might spell retail relief for.
customers. With 22 models bring the stigma of being “older” -.
even if the 2023 design is unchanged – that can suggest dealers are.
incentivized to burn out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your residual worths in terms of harder grading,” Woodworth.
said.Some dealers are offering below-MSRP discount rates on lorries that.
brought sticker-price-plus Monroney labels simply months prior to. 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 hits its stride,.
and after that descending in summertime during the yearly selldown and the.
design year shifts in September and October. Supply chain.
mayhem has actually made it impossible for some car manufacturers to follow.
tradition.That stated, with specific elements of the supply chain still in.
flux, it might make sense for manufacturing connection to continue.
If a 2023 minor design modification includes a part, building 2022 models.
that is not easily offered, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealers from its Louisville factory, as the 2023 minor design.
modification is still ramping up. The same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their foundations with the Escape.
platform.Remaining 2022 units are typically particular to certain designs. In.
the marketplace for a luxury SUV? The models with the greatest staying.
2022 design year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
refreshing – the national mbusa.com site still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 designs are.
still in strong supply. Amongst luxury brands, Mercedes had 33% share.
of staying 22 models still advertised the week ending December.
4, while Lincoln accounted for 22% share of remaining luxury.
22s. That said, Mercedes dealers have actually done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 design showing up. And other key Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain hiccups likewise are impacting stocks in other.
ways. 10s 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 important parts, and have been gathering in parking area.
near their particular factories until they can be released. On top.
of those unfinished units, Ford dealerships had nearly as numerous F-150s.
marketed the week ending December 4 as they carried out in August in.
September. When the ghost systems finally get their needed parts.
and get in wholesale inventory – 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 dealer level.The integrated black-swan occasions of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine interfered with.
traditional production and supply standards – the most current downstream.
impact being the overrun of previous model-year production and.
inventory. How the industry can recover to its regular cadence.
depends upon its adaptability to these continued interruptions.