For all the talk of low inventories, and cars and truck dealerships adding
” market modifications” on top of MSRP, there were almost a.
half-million units of remaining 2022 model year lorries still.
marketed for sale in the United States heading into the very first.
weekend of December. That is on top of the 2023 lorries that have.
been showing up 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 units of 2022 models marketed as.
available for sale the week ending December 4. Those four brand names.
represent 71% of 2022 promoted inventory noted by mainstream.
brand name dealerships – and 66% of all dealer-advertised stock when.
including luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 automobiles in dealership promoted stock,.
according to the S&P Global Mobility analysis.While most car manufacturers typically ease off production in late.
summer to shift to the new design year, and clear out the last.
of their old designs by Christmas, specific car manufacturers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” stated Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip lack, inventory control is not as meticulous as it.
used to be.” Is running old inventories into the brand-new design year a bad thing?
It can be for car manufacturers, however it could spell retail relief for.
customers. With 22 designs carrying the stigma of being “older” -.
even if the 2023 design is the same – that can suggest dealerships are.
incentivized to blow out the zero-miles 22s.” The longer you wait to alter over your design year, the more it.
hits your residual values in terms of harder grading,” Woodworth.
said.Some dealers are using below-MSRP discount rates on automobiles that.
brought sticker-price-plus Monroney labels just months before. And.
with customer need waning due to external economic 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.
predictable curve, peaking in spring as production strikes its stride,.
and after that descending in summer season during the yearly 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 specific aspects of the supply chain still in.
flux, it may make good sense for manufacturing connection to continue.
If a 2023 minor model modification includes a part, developing 2022 designs.
that is not easily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
car dealerships from its Louisville factory, as the 2023 small model.
change is still increase. The same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their underpinnings with the Escape.
platform.Remaining 2022 systems are often particular to particular models. In.
the market for a luxury SUV? The designs with the highest staying.
2022 model year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting a 2023.
freshening – the national mbusa.com website still wasnt listing.
the 2023 as available on December 15 – and as such 2022 designs are.
still in strong supply. Amongst luxury brands, Mercedes had 33% share.
of staying 22 designs still advertised the week ending December.
4, while Lincoln accounted for 22% share of leftover 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 models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain missteps also are impacting stocks in other.
ways. Tens 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 crucial parts, and have actually been gathering in parking area.
near their particular factories until they can be launched. On top.
of those unfinished units, Ford dealerships had nearly as many 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 happen by the.
end of December – that will add to the pressure to clean out the.
22 models at the dealer level.The integrated black-swan events of COVID, semiconductor.
shortages, and the Russian intrusion of Ukraine disrupted.
standard production and supply norms – the newest downstream.
impact being the overrun of prior model-year production and.
inventory. How the industry can recover to its routine cadence.
depends on its flexibility to these continued disruptions.

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