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.

For all the talk of low stocks, and vehicle dealers tacking
” market changes” on top of MSRP, there were almost a.
half-million systems of remaining 2022 model year vehicles still.
Promoted for sale in the United States heading into the.
weekend of December. That is on top of the 2023 automobiles that have.
been showing up on dealership lots.According to S&P Global Mobilitys analysis of US dealership.
marketed stock information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models marketed as.
readily available for sale the week ending December 4. Those 4 brand names.
account for 71% of 2022 advertised inventory noted by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
including high-end marques.Among luxury brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 cars in dealership advertised inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers typically relieve off production in late.
summertime to shift to the new model year, and clear out the last.
of their old designs by Christmas, specific car manufacturers really have.
seen their 2022 inventories increase in October and November.” Model year discipline has dropped,” stated Cheryl Woodworth,.
consulting associate director for S&P Global Mobility. “With.
the chip shortage, inventory control is not as precise as it.
used to be.” Is running old stocks into the new design year a bad thing?
It can be for automakers, but it might spell retail relief for.
customers. With 22 models bring the preconception of being “older” -.
even if the 2023 model is the same – that can suggest dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your design year, the more it.
hits your residual worths in regards to tougher grading,” Woodworth.
said.Some dealerships are offering below-MSRP discounts on lorries that.
brought sticker-price-plus Monroney labels simply months prior to. And.
with customer need subsiding 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.
foreseeable curve, peaking in spring as production strikes its stride,.
and after that descending in summer season during the yearly selldown and the.
model year shifts in September and October. However supply chain.
mayhem has actually made it difficult for some automakers to follow.
tradition.That stated, with certain aspects of the supply chain still in.
flux, it may make sense for producing connection to continue.
If a 2023 small design modification consists of a part, building 2022 models.
that is not easily available, Woodworth said.In November, Ford was still delivering 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small design.
change is still increase. The very same extension of late.
production 22 designs uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a number of their foundations with the Escape.
platform.Remaining 2022 systems are often particular to certain models. In.
the market for a luxury SUV? The models with the greatest 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 site still wasnt listing.
the 2023 as available on December 15 – and as such 2022 models are.
still in strong supply. Among high-end brand names, Mercedes had 33% share.
of staying 22 designs still promoted the week ending December.
4, while Lincoln represented 22% share of leftover luxury.
22s. That stated, Mercedes dealerships have done a strong job of selling.
down its 2022 stocks from mid-summer in anticipation of the.
23 design arriving. And other key Mercedes volume models – GLE,.
S-Class, and C-Class – are mainly represented by 2023 design.
production.Supply chain missteps also are affecting stocks in other.
ways. 10s of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line but were.
missing essential parts, and have been gathering in car park.
near their particular factories until they can be launched. On top.
of those incomplete systems, Ford dealers had nearly as many F-150s.
marketed the week ending December 4 as they did in August in.
September. When the ghost units finally receive their needed parts.
and enter wholesale stock – Ford hopes it will happen 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.
lacks, and the Russian intrusion of Ukraine disrupted.
standard manufacturing and supply norms – 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 on its versatility to these continued interruptions.