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Fleet data collected in 2019 found that depreciation expenses for most vehicles went down in 2019.
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Fleet order-to-delivery times for model-year 2019 increased in comparison to those in MY-2018. Delays were caused by rail constraints, plant downtimes, truck driver shortages, production capacity strains, and early order cutoffs.
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Increased fleet orders for trucks and vans created backlogs at upfitter facilities, increasing lead times and missed ship-thrus. A shortage of rail autorack carriers further delayed deliveries. Despite this, order-to-delivery for most units was similar to 2017.
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Order cut-off dates for several 2018 model year truck models are fast approaching, according to Wheels, Inc. General Motors and Fiat Chrysler Automobiles have announced earlier than normal cut-off dates as they plan to move production and retool their plants in preparation for upcoming new designs and changes.
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Wheels Inc. has become the first fleet management company to offer a program to help its clients manage reimbursed vehicles, the company has announced.
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If you have been in the fleet industry for 20 years or even just one year, you experience change on a daily basis. It is fun to think back to a time when the 1970 Pontiac GTO achieved 10 mpg.
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While OTD remained relatively static overall, year-over-year, delivery times were still above the industry average benchmark of 60 days. Quality holds and recalls impacted some high-volume fleet models.
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As John F. Kennedy once said, “History is a relentless master. It has no present, only the past rushing into the future. To try to hold fast is to be swept aside.”
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Key factors causing OTD delays were increased vehicle volumes due to continued auto industry sales growth, lengthy quality holds, parts shortages, ongoing railcar shortages, recalls, plant changes, and weather-related issues.
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In today’s uncertain economic times, it is not unusual to push out truck replacement cycles. While an attractive short-term tactic, fleet managers need to be aware of the long-term consequences.
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