The ongoing semiconductor shortages, with the resultant delays on new vehicles, is impacting fleet replacement cycles. As a result, many fleets are now facing lifecycle extensions as shortage of replacement vehicles becomes a pressing issue, which in turn places a premium on Service, Maintenance and Repair (SMR) schedules.
Preventive maintenance (PM) expenses in CY-2020 were lower compared to 2019, primarily due to the pandemic-induced economic shutdown resulting in fewer miles driven as many fleet vehicles were idled.
The trend of increased PM costs per service will continue as more and more vehicles requiring conventional oil are taken out of service and replaced with models that require synthetics.
More stringent enforcement of OEM-recommended services to qualify for warranty coverage continues. Cash flow issues caused by the pandemic have caused some OEMs to be more tight-fisted with warranty recovery dollars.
The trend has been to extend PM intervals due to the use of longer-lasting synthetic motor oils, but during the COVID lockdown many fleet vehicles were idled, decreasing miles driven, causing PM compliance to diminish.
This video analyzes fleet sales and acquisition trends month over month; flat PM costs as some fleets base oil drain intervals solely on mileage; replacement tire expenses remain flat but increased interest in retreads as a result of cash conservation initiatives; and an uptick in unnecessary idling due to field workers using vehicles for social distancing.
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