For all the talk of low stocks, and cars and truck dealerships adding
” market adjustments” on top of MSRP, there were almost a.
half-million units of leftover 2022 design year lorries still.
Promoted 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.
marketed stock data, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs marketed as.
available for sale the week ending December 4. Those 4 brands.
represent 71% of 2022 promoted inventory listed by mainstream.
brand name dealers – and 66% of all dealer-advertised inventory when.
including high-end marques.Among luxury brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 lorries in dealer marketed stock,.
according to the S&P Global Mobility analysis.While most automakers typically ease off production in late.
summertime to shift to the new design year, and clear out the last.
of their old models by Christmas, certain automakers really have.
seen their 2022 inventories increase in October and November.” Model year discipline has actually ebbed,” said Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip lack, stock control is not as meticulous as it.
used to be.” Is running old stocks into the new model year a bad thing?
It can be for automakers, however it could spell retail relief for.
customers. With 22 models bring the preconception of being “older” -.
even if the 2023 design is the same – that can mean dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to change over your design year, the more it.
hits your residual values in terms of harder grading,” Woodworth.
said.Some dealerships are using below-MSRP discounts on cars that.
carried sticker-price-plus Monroney labels just months before. 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 hits its stride,.
and after that descending in summer season throughout the annual selldown and the.
model year shifts in September and October. Supply chain.
chaos has made it difficult for some car manufacturers to follow.
tradition.That stated, with certain elements of the supply chain still in.
flux, it may make good sense for manufacturing continuity to continue.
building 2022 designs if a 2023 small design change includes a part.
that is not easily 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 increase. The very same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share many of their foundations with the Escape.
platform.Remaining 2022 systems are often specific to particular models. In.
the market for a high-end 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 waiting for a 2023.
freshening – 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. Amongst high-end brands, Mercedes had 33% share.
of remaining 22 designs still advertised the week ending December.
4, while Lincoln accounted for 22% share of leftover high-end.
22s. That stated, Mercedes dealers have actually done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model arriving. And other essential Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 design.
production.Supply chain hiccups 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 vital parts, and have been gathering in car park.
near their respective factories until they can be released. On top.
of those incomplete systems, Ford dealerships had almost as lots of F-150s.
advertised the week ending December 4 as they did in August in.
September. When the ghost systems lastly receive their required parts.
and get in wholesale inventory – Ford hopes it will happen by the.
end of December – that will include to the pressure to clean out the.
22 models at the dealer level.The combined black-swan events of COVID, semiconductor.
shortages, and the Russian invasion of Ukraine interfered with.
standard manufacturing and supply norms – the most recent downstream.
effect being the overrun of prior model-year production and.
stock. How the market can recover to its regular cadence.
depends upon its flexibility to these continued interruptions.

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