Automotive Fleet

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PM Schedule

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.

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How the Pandemic Disrupted PM Compliance

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. 

Forecast of PM Costs in 2021

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. 

Warranty Recovery Dollars Decrease After OEM Shutdown

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.

PM Compliance Disrupted by Pandemic-Induced Shutdown

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.

State of the Fleet Industry: Fleet Trends in Maintenance, Replacement Tires & Fuel Costs

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.

Strategic Changes for Extended PM Intervals

Today’s engine technology and hardware systems require a more strategic inspection than before. Preventive maintenance based on oil-change intervals may not be enough.

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