September 27, 2022

Fleets Fear Sourcing Constraints Will Continue Beyond 2023 into CY-2024

The 114th State of the Fleet Industry video produced by Automotive Fleet offers insights into the state of the fleet market as presented by AF Editor Mike Antich.

🎙Today's topics include:

  • 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 cancelled 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 ⌚

0:00 Intro
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


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