This post was released by S&P Global Mobility and not by S&P Global Ratings, which is an individually managed department of S&P Global.

For all the talk of low stocks, and automobile dealerships adding
” market modifications” on top of MSRP, there were almost a.
half-million units of leftover 2022 design year vehicles still.
marketed for sale in the United States heading into the very first.
weekend of December. That is on top of the 2023 cars that have.
been getting here on dealership lots.According to S&P Global Mobilitys analysis of United States dealer.
advertised inventory information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 systems of 2022 designs advertised as.
readily available for sale the week ending December 4. Those four brands.
account for 71% of 2022 advertised inventory listed by mainstream.
brand dealers – and 66% of all dealer-advertised stock when.
consisting of high-end marques.Among high-end brands, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 automobiles in dealership advertised stock,.
according to the S&P Global Mobility analysis.While most automakers traditionally relieve off production in late.
summer to shift to the new design year, and clear out the last.
of their old models by Christmas, particular car manufacturers in fact have.
seen their 2022 inventories increase in October and November.” Model year discipline has lessened,” said Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip scarcity, inventory control is not as careful as it.
utilized to be.” Is running old inventories into the brand-new model 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 design is the same – that can imply 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 terms of harder grading,” Woodworth.
said.Some dealers are providing below-MSRP discount rates on vehicles that.
carried sticker-price-plus Monroney labels just months before. And.
with consumer need waning 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 design year follows a.
predictable curve, peaking in spring as production hits its stride,.
and then coming down in summer season during the annual selldown and the.
design year transitions in September and October. Supply chain.
turmoil has made it difficult for some car manufacturers to follow.
tradition.That said, with particular aspects of the supply chain still in.
flux, it might make good sense for making connection to continue.
building 2022 models if a 2023 small design modification includes a part.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealerships from its Louisville factory, as the 2023 minor design.
change is still increase. The same extension of late.
production 22 designs applies to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their foundations with the Escape.
platform.Remaining 2022 units are frequently specific to certain models. In.
the market for a luxury SUV? The designs with the greatest remaining.
2022 model year units are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still awaiting 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 brand names, Mercedes had 33% share.
of remaining 22 models still advertised the week ending December.
4, while Lincoln accounted for 22% share of leftover luxury.
22s. That stated, Mercedes dealers have done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 design getting here. And other essential Mercedes volume designs – GLE,.
S-Class, and C-Class – are mostly represented by 2023 model.
production.Supply chain hiccups likewise are impacting inventories in other.
ways. 10s of countless so-called “ghost systems” of the F-150 and.
Chevrolet Silverado have actually rolled off the assembly line but were.
missing out on crucial parts, and have actually been collecting in parking area.
near their respective factories up until they can be released. On top.
of those unfinished systems, Ford dealerships had nearly as lots of F-150s.
marketed the week ending December 4 as they performed in August in.
September. When the ghost systems finally 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 clean out the.
22 models at the dealer level.The integrated black-swan events of COVID, semiconductor.
scarcities, and the Russian invasion of Ukraine interfered with.
conventional manufacturing and supply norms – the current downstream.
effect being the overrun of prior model-year production and.
stock. How the market can recuperate to its regular cadence.
depends upon its flexibility to these continued disturbances.