September 27, 2022
Fleets Fear Sourcing Constraints Will Continue Beyond 2023 into CY-2024
In Automotive Fleet’s 114th video episode of State of the Fleet Industry, gain insight into the state of the fleet market as presented by AF Editor Mike Antich.
- Examined is the transition by most OEMs to an allocation system designed to manage the acquisitions of their products by their fleet customers.
- The implementation of controlled allocation systems is a significant development because it is truly a historic milestone that has never happened before in the history of fleet ordering.
- Sourcing constraints could theoretically continue into the 2025 model-year due to the large industry-wide pent-up demand of unfilled canceled orders carried over to the next model year.
- An economic recession could accelerate the increase in fleet allocation by dampening retail demand for new vehicles.
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⌚ Timestamps ⌚
0:53 Examining the transition to allocation systems
1:20 Historic milestone: A controlled allocation system
3:25 Sourcing constraints to continue
9:38 Effects of an economic recession