For all the talk of low stocks, and automobile dealers adding
” market changes” on top of MSRP, there were almost a.
half-million units of leftover 2022 model year vehicles still.
Marketed for sale in the United States heading into the.
weekend of December. That is on top of the 2023 vehicles that have.
been arriving on dealer lots.According to S&P Global Mobilitys analysis of US dealer.
marketed inventory information, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 models promoted as.
offered for sale the week ending December 4. Those 4 brand names.
account for 71% of 2022 advertised stock listed by mainstream.
brand dealerships – and 66% of all dealer-advertised inventory when.
including luxury marques.Among luxury brands, Mercedes-Benz and Lincoln still showed the.
most remaining 2022 lorries in dealership promoted stock,.
according to the S&P Global Mobility analysis.While most car manufacturers generally reduce off production in late.
summer season to transition to the new design year, and clear out the last.
of their old designs by Christmas, particular automakers actually have.
seen their 2022 inventories increase in October and November.” Model year discipline has ebbed,” said Cheryl Woodworth,.
seeking advice from associate director for S&P Global Mobility. “With.
the chip shortage, stock control is not as careful as it.
utilized to be.” Is running old inventories into the new design year a bad thing?
It can be for car manufacturers, but it could spell retail relief for.
consumers. With 22 designs carrying the stigma of being “older” -.
even if the 2023 design 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 values in terms of tougher grading,” Woodworth.
said.Some dealerships are offering below-MSRP discount rates on lorries that.
brought sticker-price-plus Monroney labels just months prior to. And.
with customer need waning due to external economic 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 after that descending in summer during the annual selldown and the.
model year transitions in September and October. Supply chain.
turmoil has made it difficult for some automakers to follow.
tradition.That stated, with particular components of the supply chain still in.
flux, it may make good sense for producing continuity to continue.
If a 2023 small design modification includes a part, constructing 2022 designs.
that is not readily offered, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small design.
modification is still increase. The very same extension of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share much of their foundations with the Escape.
platform.Remaining 2022 systems are typically specific to particular models. In.
the marketplace for a luxury SUV? The designs with the greatest staying.
2022 model year systems 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 site still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 models are.
still in strong supply. Among high-end brand names, Mercedes had 33% share.
of remaining 22 designs still marketed the week ending December.
4, while Lincoln represented 22% share of leftover high-end.
22s. That stated, Mercedes dealerships have done a strong job of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 design showing up. And other key Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 model.
production.Supply chain missteps likewise are affecting stocks in other.
methods. Tens of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on vital parts, and have been collecting in parking lots.
near their respective factories until they can be released. On top.
of those unfinished systems, Ford dealerships had nearly as many F-150s.
marketed the week ending December 4 as they carried out in August in.
September. When the ghost units lastly get their needed parts.
and go into wholesale inventory – Ford hopes it will take place by the.
end of December – that will contribute to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan events of COVID, semiconductor.
lacks, and the Russian invasion of Ukraine disrupted.
conventional production and supply standards – the most recent downstream.
effect being the overrun of prior model-year production and.
inventory. How the industry can recover to its routine cadence.
depends on its versatility to these continued disruptions.
This short article was published by S&P Global Mobility and not by S&P Global Ratings, which is an individually handled department of S&P Global.