For all the talk of low inventories, and cars and truck dealers tacking
” market modifications” on top of MSRP, there were nearly a.
half-million units of remaining 2022 design year lorries still.
marketed for sale in the United States heading into the first.
weekend of December. That is on top of the 2023 lorries that have.
been getting here on dealer lots.According to S&P Global Mobilitys analysis of US dealership.
marketed stock information, 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 4 brand names.
represent 71% of 2022 marketed inventory listed by mainstream.
brand dealerships – and 66% of all dealer-advertised stock when.
consisting of luxury marques.Among high-end brands, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 lorries in dealership marketed inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers traditionally relieve off production in late.
summer to transition to the new model year, and clear out the last.
of their old models by Christmas, specific car manufacturers really have.
seen their 2022 stocks increase in October and November.” Model year discipline has lessened,” stated Cheryl Woodworth,.
consulting 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 inventories into the brand-new design year a bad thing?
It can be for automakers, however it might spell retail relief for.
consumers. With 22 models carrying 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 alter over your model year, the more it.
hits your recurring values in regards to tougher grading,” Woodworth.
said.Some dealers are offering below-MSRP discounts on automobiles that.
brought sticker-price-plus Monroney labels just months before. 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.
predictable curve, peaking in spring as production strikes its stride,.
and then descending in summer season throughout the yearly selldown and the.
model year transitions in September and October. However supply chain.
chaos has actually made it difficult for some automakers to follow.
tradition.That said, with specific components of the supply chain still in.
flux, it may make sense for producing continuity to continue.
developing 2022 models if a 2023 small design modification consists of 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 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 number of their foundations with the Escape.
platform.Remaining 2022 units are often specific to certain models. In.
the market for a luxury SUV? The designs with the highest remaining.
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 designs are.
still in strong supply. Among luxury brands, Mercedes had 33% share.
of staying 22 designs still promoted the week ending December.
4, while Lincoln represented 22% share of leftover high-end.
22s. That said, Mercedes dealers have done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 model arriving. And other key Mercedes volume designs – GLE,.
S-Class, and C-Class – are mainly represented by 2023 model.
production.Supply chain hiccups also are impacting inventories in other.
methods. Tens of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing out on crucial parts, and have been gathering in parking lots.
near their respective 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 did in August in.
September. When the ghost systems lastly receive their required parts.
and enter wholesale stock – Ford hopes it will happen by the.
end of December – that will include to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan occasions of COVID, semiconductor.
lacks, and the Russian intrusion of Ukraine interrupted.
conventional production and supply norms – the most current downstream.
impact being the overrun of prior model-year production and.
stock. How the market can recover to its regular cadence.
depends upon its adaptability to these continued disturbances.
This short article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.