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

For all the talk of low stocks, and car dealers tacking
” market changes” on top of MSRP, there were almost a.
half-million units of remaining 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 automobiles that have.
been arriving on dealership 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.
readily available for sale the week ending December 4. Those 4 brand names.
represent 71% of 2022 marketed stock noted by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 lorries in dealer promoted stock,.
according to the S&P Global Mobility analysis.While most automakers generally alleviate off production in late.
summertime to shift to the new design year, and clear out the last.
of their old designs by Christmas, particular automakers actually have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as precise as it.
used to be.” Is running old stocks into the brand-new design year a bad thing?
It can be for automakers, however it might spell retail relief for.
customers. With 22 designs bring the stigma of being “older” -.
even if the 2023 design is unchanged – that can suggest dealerships 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 worths in terms of harder grading,” Woodworth.
said.Some dealerships are providing below-MSRP discount rates on automobiles that.
carried sticker-price-plus Monroney labels just months before. And.
with consumer need subsiding 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.
foreseeable curve, peaking in spring as production hits its stride,.
and after that descending in summertime throughout the annual selldown and the.
design year transitions in September and October. However supply chain.
chaos has actually made it impossible for some car manufacturers to follow.
tradition.That said, with certain aspects of the supply chain still in.
flux, it might make sense for manufacturing connection to continue.
constructing 2022 models if a 2023 small model change consists of a part.
that is not readily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 small design.
change is still increase. The very same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their underpinnings with the Escape.
platform.Remaining 2022 systems are typically specific to particular designs. In.
the marketplace for a luxury SUV? The models with the highest remaining.
2022 design year units 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 offered on December 15 – and as such 2022 designs are.
still in strong supply. Amongst high-end brand names, Mercedes had 33% share.
of staying 22 models still advertised the week ending December.
4, while Lincoln represented 22% share of remaining high-end.
22s. That stated, Mercedes dealerships have actually 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 models – GLE,.
S-Class, and C-Class – are mostly represented by 2023 model.
production.Supply chain hiccups also are impacting inventories in other.
ways. Tens of thousands of so-called “ghost units” 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 particular factories till they can be released. On top.
of those unfinished units, Ford dealers had almost as many F-150s.
marketed the week ending December 4 as they did in August in.
September. When the ghost units lastly receive their needed parts.
and get in wholesale stock – Ford hopes it will occur by the.
end of December – that will contribute to the pressure to clean out the.
22 designs at the dealer level.The integrated black-swan events of COVID, semiconductor.
scarcities, and the Russian intrusion of Ukraine interrupted.
standard manufacturing and supply standards – the current downstream.
impact being the overrun of prior model-year production and.
inventory. How the market can recuperate to its routine cadence.
depends on its versatility to these continued disturbances.