This post was released by S&P Global Mobility and not by S&P Global Ratings, which is an independently handled division of S&P Global.

For all the talk of low inventories, and automobile dealerships adding
” market adjustments” on top of MSRP, there were nearly a.
half-million systems of remaining 2022 model year lorries still.
advertised 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 arriving on dealer lots.According to S&P Global Mobilitys analysis of US dealer.
promoted inventory information, mainstream brands Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs advertised as.
available for sale the week ending December 4. Those four brand names.
represent 71% of 2022 advertised inventory noted by mainstream.
brand name dealerships – and 66% of all dealer-advertised inventory when.
consisting of luxury marques.Among high-end brand names, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 automobiles in dealership marketed stock,.
according to the S&P Global Mobility analysis.While most automakers typically alleviate off production in late.
summertime to shift to the new design year, and clear out the last.
of their old models by Christmas, particular automakers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” said Cheryl Woodworth,.
speaking with 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 might spell retail relief for.
customers. With 22 models carrying the stigma of being “older” -.
even if the 2023 model is the same – that can mean dealers are.
incentivized to blow out the zero-miles 22s.” The longer you wait to change over your model year, the more it.
hits your residual worths in regards to tougher grading,” Woodworth.
said.Some dealerships are using below-MSRP discounts on cars that.
carried sticker-price-plus Monroney labels just months prior to. And.
with consumer 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 design year follows a.
foreseeable curve, peaking in spring as production strikes its stride,.
and then descending in summer throughout the yearly selldown and the.
model year transitions in September and October. However supply chain.
turmoil has made it impossible for some automakers to follow.
tradition.That stated, with particular components of the supply chain still in.
flux, it might make sense for manufacturing connection to continue.
If a 2023 minor model modification includes a part, constructing 2022 models.
that is not readily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small model.
change is still ramping up. The exact same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their foundations with the Escape.
platform.Remaining 2022 units are typically specific to specific models. In.
the marketplace for a luxury SUV? The designs with the greatest staying.
2022 design year systems 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 available on December 15 – and as such 2022 designs are.
still in strong supply. Among luxury brands, Mercedes had 33% share.
of remaining 22 designs still marketed the week ending December.
4, while Lincoln accounted for 22% share of remaining high-end.
22s. That said, 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 model.
production.Supply chain missteps also are affecting inventories in other.
methods. Tens of thousands of so-called “ghost units” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line however were.
missing out on essential parts, and have been gathering in car park.
near their particular factories up until they can be released. On top.
of those unfinished systems, Ford dealers had nearly as lots of F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost units lastly get their needed parts.
and get in wholesale stock – Ford hopes it will take place by the.
end of December – that will add to the pressure to clean out the.
22 designs at the dealership level.The combined black-swan occasions of COVID, semiconductor.
shortages, and the Russian invasion of Ukraine disrupted.
conventional production and supply standards – the current downstream.
impact being the overrun of previous model-year production and.
inventory. How the industry can recover to its routine cadence.
depends upon its adaptability to these continued interruptions.