February 15, 2022
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 ⏱
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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