Automotive Fleet, October 2017

The SUV segment also saw a decrease by four days to 68 days on average Other participating fleet management companies reported similar OTD results The OTD performance of the van sector stands out This segment led the way this year with significant improvements across the board said Crocker Two specific van models that stood out were the Dodge Grand Caravan and the Ford Transit Connect These two vans improved the most with a decrease in over 30 days said Kelly of LeasePlan USA The improved time for the Grand Caravan can be attributed to the early cut off and hold for the 2016 MY FCA halted production of this model for over three months which caused order to delivery times to be inflated The 2017 MY Transit Connect also improved order to delivery times over 2016 MY Last year the 2016 MY Transit Connect was impacted by a door latch recall that created delays for this model Some OTD timeframes were remarkably quick GM built some trucks and SUVs in four to five weeks and had vehicles delivered to dealers and or upfitters said Erculiani of Element Some GM vehicles were built ahead of schedule and Element was not made aware of it nor were we expecting the expediting of the order This created some timing issues with upfitters dealerships and customers receiving vehicles earlier than expected OTD improvements also occurred with the Dodge Ram 1500 The Dodge Ram 1500 improved with less issues in equipment constraints compared to 2016 MY said Erculiani Another example of fast OTD was the Chevrolet Colorado which is assembled at GMs Wentzville assembly plant in Missouri The efficiency of Wentzville assembly plant has resulted in a significant improvement in Colorado production Overall OTD times for 2017 remained constant and improved for some of the brands that Union ordered versus 2016 There were some differences based on a few models that had gone through a refresh but nothing drastic on delivery delays We also experienced some transportation issues based on where vehicles were produced and due to capacity and demand with individual models said Carson of Union Leasing In its survey data Union Leasing reported some delays in the small pickup market Demand appeared to be strong for several manufacturers causing some production pain As a result it put stress on both build times and on logistics Completion times increased as did the time to transport to delivering dealers said Carson There were upfit delays for small trucks which were attributed to capacity issues that the manufacturers and their established upfit groups had not adequately staffed to accommodate Across the Board Improvements Most OEM brands experienced improved OTD times for 2017 model deliveries We have seen improvement across the industry Chevrolet made strides in all three categories of cars trucks and SUVs Chrysler also performed well specifically in categories such as trucks and SUVs where the market is shifting Ford made gains in truck and van production but still is lagging in sedan OTD Nissan performed well with its van division but fleet allocation for its Rogue and Altima still encounter speed bumps said Crocker of Merchants Fleet Management Nissan is integrating upfit status reporting into its regular status reporting offerings On the whole OTD for most 2017 models was relatively stable when compared to each models average OTD in the 2016 model year There were no dramatic changes in OTD for specific models Many carryover models typically fell in the 8 to 10 or 10 to 12 weeks range As noted earlier a number of the key volume truck and van models across various OEMs showed improved OTDs and we have experienced some specific deliveries that occurred in the 6 to 8 week range which was unheard of in recent years said Ghosh of ARI Presumably a combination of logistical improvements and less volume pressure are factors in the improvement and its still not clear yet whether or not these OTD gains will remain for the foreseeable future Upfitter related OTD Issues One area of OTD improvement for the 2017 model year was the reduction in number of vehicles that missed ship thru The OEMs have made significant improvements in reducing the number of vehicles that missed ship thru which unexpectedly increases the OTD in those instances and creates headaches for clients as upfit options can be impacted as well said Ghosh of ARI This was certainly a more significant issue in 2016 and previously but while it still occurs the improvement is definitely noticeable In other instances vehicles were delivered to dealers without the necessary parts to complete the upfit at the final destination but most certainly this was the exception and not the norm Another factor cited by FMCs was consolidation in the upfit industry that led to delays in OTD The upfit industry as a whole experienced several mergers and acquisitions this year As a result long established day to day and non routine communication protocols were disrupted suppliers were often unable to provide accurate and timely status information and we experienced occasional delays in getting vehicles completed In addition inadequate communication from some suppliers to the OEMs resulted in delays in vehicles returning to ship thru traffic said Krams of Wheels Other FMCs also noted issues with upfitters undergoing management changes or after being newly acquired by another company AUTOMOTIVE FLEET I OCTOBER 2017 22 VAN 2017 ORDER TO DELIVERY TIMES VAN MODELS 2017 MY OTD DAYS 2016 MY OTD DAYS CHANGE DAYS 2017 Chrysler Pacifica 57 N A N A 2017 Dodge Grand Caravan 62 85 23 2017 Toyota Sienna 64 80 16 2017 GMC Savana combined 69 98 29 2017 Ram ProMaster City 82 105 23 2017 Chevrolet Express combined 100 96 4 2017 Ford Transit Connect 100 134 25 2017 Ram ProMaster combined 113 148 35 2017 Ford Transit combined 114 109 5 2017 Nissan NV combined 117 95 22 2017 Chevrolet City Express 128 232 104 SOURCE AF RESEARCH DEPT KELLY LeasePlan USA 18TH ANNUAL OTD SURVEY PART 1