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Upfitters experienced a whipsaw effect of robust fleet orders straining their pre-pandemic production capacity and within the space of a month were struggling with chassis shortages due to the suspension of vehicle production.
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During the 2020 model-year, the fleet industry did not experience significant railcar-related issues as seen in past model-years. However, fleets did report transportation issues with car haulers and last-mile deliveries to the dealers.
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Up to 40% of fleets in Germany suspended vehicle orders in April, and many vehicles that were ordered at the end of 2019 and the beginning of 2020 are just now rolling to customers.
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Strong demand for light- and medium-duty trucks in the 2019 model-year resulting in widespread backlogs at upfitters delaying some ship-thru units, impacting order-to-delivery times for both light- and medium-duty trucks.
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In MY-2019, ongoing railcar shortages created huge backlogs of vehicles needing to be shipped. The railcar shortage has been a key factor for fleet delivery delays for the past 20 years. The question is when does it get fixed?
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Automotive Fleet magazine is hosting a free webinar Oct. 23, tackling one of the biggest challenges fleet managers face today dealing with OTD times.
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For the past several model years, order-to-delivery times for high-volume work trucks and vans have increased due to strong demand. Vocational trucks are vulnerable to OTD delays because fleet orders are usually concentrated among a handful of models.
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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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The majority of fleets report new-vehicle acquisitions will continue to be elevated due to strong business growth, comparable to MY-2019, with most forecasting an increase or continuation of similar order volume in MY-2020.
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Toyota Motor North America has been taking orders on its 2020-model-year lineup and dates for deliveries of most models have been set for later this year. Toyota began deliveries of three models in May.
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