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The supply issues plaguing automotive are ameliorating month over month, but to varying degrees depending on fleet type.
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The new, COVID-impacted environment has prompted changes in how auto transporters meet the changing needs of fleets.
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The drawn-out vehicle shortage is producing a domino effect of issues for many fleet segments, says Cox Automotive’s Jonathan Smoke, but a potential recession may have a silver lining — if we even have one at all.
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Part and labor prices have increased 4-8%, while part and labor availability have decreased. Due to difficulties sourcing replacement vehicles, fleets are keeping units in service longer. This caused repair spend to increase in 2021.
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As disruptions continue to rock vehicle and parts production, fleets should plan for limited fleet supply and cost increases in the near term. But there are things they can do now to mitigate the situation.
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With vehicle supply constraints and inflated prices now forecast through 2023, fleet operators are adjusting their duty cycles, fleet plans, and job management.
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The decrease in U.S. auto sales is due to historically low new-vehicle inventory levels, which are over 50% lower than they were a year ago.
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Monthly and year-to-date comparisons of rental fleet sales to pre-pandemic periods in 2019 show unprecedented declines.
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Panelists during Day 4 and 5 of the Fleet Forward Experience explored how technology is enabling smart mapping and a more efficient supply chain, while others stressed the considerable planning involved to implement electric infrastructure and IoT networks.
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