EV Proliferation to Put Downward Pressure on ICE Residuals

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The 81st State of the Fleet Industry video produced by Automotive Fleet offers an updated look at the state of the fleet market as presented by AF Editor Mike Antich.

🎙Today's topics include:

• The recent blockade of the Ambassador Bridge indicates that there continues to be multiple choke points throughout the automotive supply chain both here and abroad.
• Product availability constraints is forcing fleets to extend vehicle services lives that is resulting in an uptick in unscheduled maintenance.
• Fleet maintenance costs have increased with a growing factor being inflationary price pressures on commodity prices and labor rates.
• Early glimpses from Europe show EV proliferation starting to put downward pressure on ICE vehicle resale values.

⏱ Timestamps ⏱

0:00 Intro
1:20 Supply Chain Choke Point
2:48 250K Lost Production in CY-22
3:43 Inflationary Pressure on Maintenance Costs
4:15 Labor Rate Inflation
4:35 CPI Inflation Highest in 40 Years
4:58 “Market Adjustment” Euphemism
6:16 EV Impact on ICE Residuals

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Originally posted on Automotive Fleet