Fleet managers are being warned that they should expect vehicle shortages to remain a fact of life throughout 2023 and beyond…
Vehicle Shortages to Continue
The consultancy firm Arthur D Little is warning fleet decision-makers that vehicle shortages are ‘not close to resolution’. Indeed, it believes they’ll continue throughout 2023 and beyond. This is because of the myriad of challenges facing the automotive industry. Increasingly extreme weather, the coronavirus pandemic and successive lockdowns have wreaked havoc on supply-chains and profits.
All of these hurdles have led to car manufacturers prioritising their most profitable models over volumes. Most of these tend to be luxury vehicles, naturally unsuitable for fleet purposes. Notably, many manufacturers have also scaled back, or removed completely, various discounts; many of which fleets have typically benefited from.
SMMT data shows that a considerable 137,946 fewer cars were registered by fleets during the first seven months of the year than they did in the same period in 2021. For perspective, that’s a a 25.4% decline.
No Short-Term Solution
Wolf-Dieter Hoppe, a partner at Arthur D Little, has suggested that there’s no short-term solution to vehicle shortages. He’s pointed out that semiconductor facilities can take “up to three years” to construct. He’s also pointed to the drawn-out nature of the conflict in Ukraine, and the possibility of raised tensions between China and Taiwan as preventing stabilisation of the supply-chain.
Whilst there’s no “silver bullet”, Hoppe has suggested that fleets adapt quickly. In particular, he’s mentioned that using new manufacturers, standardising specifications and extending contracts can all help fleets survive the challenges posed by the shortages.
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