The year 2021 turned out to be unexpectedly challenging due to the ongoing COVID-19 pandemic. Despite initial hopes of improvement with the introduction of vaccines, the industry faced difficulties such as trade shows transitioning to virtual events, restrictions on corporate travel, and a shortage of new and used inventory. The chip shortage further impacted the global auto market, leading to production limitations and financial losses exceeding $210 billion. Additionally, disruptions in the global supply chain affected manufacturing components and raised concerns within the fleet industry.
The market report emphasizes the unpredictable nature of the situation and the difficulty in relying on traditional economic indicators to gauge the market’s direction. The Delta variant of COVID-19 caused setbacks, and issues related to chips, inventory, supply chains, and labor persisted. The author highlights that a significant portion of vehicle orders might never be delivered. This uncertainty hampers the ability to predict the industry’s trajectory accurately, making cautious decision-making and strategizing essential for fleet professionals.
Looking ahead to 2022, the market report suggests that the challenges from the previous years will continue. The supply chain remains disrupted, new variants of the virus are affecting work arrangements, and issues with microchips, supplies, and labor persist. The remarketing space is expected to face difficulties in accessing new inventory, leading to high prices for used assets. The production of medium-duty vehicles is hampered by resource, component, and labor shortages. Used inventory prices are expected to remain high, but not experience the same meteoric increases seen in recent years. Click the link below to read the full article.