Automotive Fleet

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

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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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