Automotive Fleet, October 2017

Steve Armstrong manager vehicle purchasing for Mike Albert Fleet Solutions Reasons for OTD Improvement There have been improvements in OTD times on certain models that experienced long lead times in previous years Smith of LeasePlan USA cited two factors that have helped improve OTD during the 2017 model year OEMs have added shifts to production plants for highdemand vehicles and larger parts capacity allowed for higher allocation levels said Smith Second forecasting has improved from all involved parties customers FMCs upfitters and OEMs which has allowed for significant improvements in the overall order todelivery process In addition whether a vehicle was redesigned or a carryover model also has an impact on OTD Carryover vehicles that had not gone through a significant redesign were more quickly processed built and shipped said Carson of Union Leasing Issues South of the Border A key factor that contributed to OTD headaches were delays in the shipment of fleet vehicles assembled in Mexico In general vehicles built in Mexico have longer shipping times Manufacturers have sought out alternate shipping methods to decrease cost and avoid rail congestion in the area The manufacturers began shipping vehicles via vessel into the U S rather than via rail which led to vehicles sitting for extended periods at the port in Mexico due to longer inspections at the port of entry in the U S and longer shipping timeframes from the port to the dealer said Krams of Wheels Nearly 60 of shipping delays we communicated to our customers this year were on vehicles produced in Mexico OTD forecasts provided by the manufacturers generally held true for a majority of the 2017 model year vehicles and were largely similar to last year OTD times In some cases OTD was notably better for a number of truck and van models While some vehicles produced outside of the U S had longer extended lead times the OEMs proactive communication helped to properly support our customers expectations An improvement in vehicle logistics railcar availability had a positive contribution as well as a softer retail demand trends said Partha Ghosh director vehicle supply chain North America for ARI Weather and quality holds typically impact the delivery process regardless of the modelyear but they were not a significant factor as has been experienced in the past One vehicle segment that experienced higher OTD times in 2017 was mediumduty trucks Medium duty trucks had a slight OTD increase in 2017 pushing 20 weeks said Erculiani of Element Lead times for mediumduty trucks have started to move in a positive direction and remain consistent This helps when we are working with customers to create solid replacement plans or with customers who have specific expectations when new vehicles need to be on road in order to take advantage of remarketing channels Isuzu was one exception among medium duty truck OEMs Isuzu has experienced increased growth while also effectively managing lead times said James Crocker director of fleet operations for Merchants Fleet Management However this sluggishness in other medium duty deliveries was offset by faster OTD times for vans and SUVs We saw a dramatic improvement in the van segment with a decrease by 15 days from 103 to 88 days This can be attributed to the Transit Van and the delays experienced last year with getting them in traffic said Elizabeth Kelly vice president vehicle acquisition and remarketing for LeasePlan USA AUTOMOTIVE FLEET I OCTOBER 2017 20 CROSSOVER SUV 2017 ORDER TO DELIVERY TIMES CROSSOVER SUV MODELS 2017 MY OTD DAYS 2016 MY OTD DAYS CHANGE DAYS 2017 Chevrolet Traverse 52 54 2 2017 Jeep Grand Cherokee 53 80 27 2017 Buick Enclave 53 53 0 2017 GMC Acadia 55 52 3 2017 GMC Yukon 55 50 5 2017 BMW X5 57 34 23 2017 Chevrolet Equinox 58 56 2 2017 Cadillac Escalade 60 73 13 2017 Chevrolet Suburban combined 60 60 0 2017 Chevrolet Tahoe 62 74 12 2017 Subaru Forester 63 70 7 2017 GMC Terrain 67 54 13 2017 Dodge Durango 67 68 1 2017 Dodge Journey 70 81 11 2017 Lincoln MKX 72 88 16 2017 Jeep Compass 77 70 7 2017 Ford Escape 77 70 7 2017 Ford Flex 78 N A N A 2017 Jeep Patriot 82 76 6 2017 Ford Explorer 82 82 0 2017 Ford Edge 86 86 0 2017 Toyota RAV4 87 90 3 2017 Volvo XC 90 89 71 18 2017 Ford Expedition 90 73 17 2017 Mercedes Benz GLE Class 91 72 19 2017 Toyota Highlander 93 81 12 2017 Audi Q7 97 105 8 2017 Nissan Armada 98 N A N A 2017 Toyota C HR 98 N A N A 2017 Toyota Sequoia 98 107 9 2017 Mercedes Benz GLS Class 106 N A N A 2017 Audi Q5 108 82 26 2017 Toyota 4Runner 119 118 1 SOURCE AF RESEARCH DEPT SMITH LeasePlan USA GHOSH ARI CROCKER Merchants Fleet Management 18TH ANNUAL OTD SURVEY PART 1