Automotive Fleet, October 2018

AUTOMOTIVE FLEET I OCTOBER 2018 18 truck models Delivery times for medium and heavy trucks with upfitting were significantly impacted by backlogs with upfitters added Erculiani There were some production backups due to increased volume and parts supplier shortages Box trucks were also delayed Even if we exclude actual upfit time once these delayed units got back into traffic it created more railcar backlog This assessment of truck OTD in 2018 was shared by most FMCs participating in this years survey OTD for medium duty trucks increased as a result of shipping delays for 2018 models Upfitter backlogs also impacted units traveling via ship thru said Reynolds of LeasePlan USA delivery times for trucks was given by Nick Erculiani VP acquisitions lifecycle for Element Fleet Management We saw longer lead times for 2018 due to a variety of factors including railcar shortages and upfitter backlogs and the plant fire at the Ford F 150 plant in May Last year we expected to see some relief on railcar shortages but this has continued to be a major contributor in delivery delays in 2018 said Erculiani Not only were OTD times for light duty trucks impacted but so too were delivery times for medium and heavy duty Deep Dive into 2018 OTD Times Similar to last year 2018 order to delivery timeframes for most passenger car and crossover models remained relatively flat with delivery times for some models decreasing Almost all vehicle lines were delivered on average within or ahead of the OEMs posted lead time Order to delivery timing provided by manufacturers generally held true for a majority of the 2018 model year vehicles and for many were comparable to 2017 models Some vehicles manufactured overseas had extended lead times but regular updates from those OEMs helped us plan accordingly and allowed us to proactively update our customers said Partha Ghosh director North American vehicle supply chain for ARI A perfect storm of increased consumer demand scheduling challenges at the beginning of the year and the industry wide railcar shortage really impacted the OTD times for one particular domestic truck lineup Fortunately for our clients the manufacturer worked very hard to overcome the rather large backlog and was able to improve lead times over the course of the year There were a number of variables exerting pressure on timely deliveries of trucks and vans For instance strong retail demand for light duty trucks increased OTD on average by putting downward pressure on fleet allocation availability As a whole we saw truck and van OTD times increase this year in comparison to the 2017 model year due to increased retail demand resulting in limited or no fleet allocation early order cut offs parts shortages due to a supplier fire changes in plant locations missed ship thrus increased upfitter lead times both rail and truck carrier shortages and severe weather across the country said Krams of Wheels Inc This made it especially challenging for the manufacturers to accurately project lead times throughout the model year resulting in some model lines experiencing OTD averages of more than 30 days beyond the manufacturers posted lead time A similar assessment of 2018 order to 19TH ANNUAL OTD SURVEY CROSSOVER SUV 2018 ORDER TO DELIVERY TIMES CROSSOVER SUV MODELS 2018 MY OTD DAYS 2017 MY OTD DAYS CHANGE DAYS 2018 GMC Acadia 47 55 8 2018 Subaru Outback 52 59 7 2018 Chevrolet Traverse 55 52 3 2018 GMC Yukon 56 55 1 2018 Buick Enclave 58 53 5 2018 Cadillac Escalade 60 60 0 2018 Chevrolet Tahoe 61 62 1 2018 Hyundai Tucson 62 N A N A 2018 BMW X5 63 57 6 2018 Jeep Grand Cherokee 63 53 10 2018 Chevrolet Suburban combined 65 60 5 2018 Mazda CX 5 67 N A N A 2018 Jeep Compass 68 77 9 2018 Subaru Forester 68 63 5 2018 Dodge Durango 69 67 2 2018 Ford Flex 69 78 9 2018 Chevrolet Equinox 70 58 12 2018 Dodge Journey 71 70 1 2018 Volvo XC 90 71 89 18 2018 Toyota RAV4 72 87 15 2018 VW Atlas 72 N A N A 2018 Ford Escape 74 77 3 2018 Toyota Highlander 74 93 19 2018 GMC Terrain 75 67 8 2018 Ford Edge 79 86 7 2018 Chevrolet Trax 80 109 29 2018 Ford Expedition 84 90 6 2018 VW Tiguan 86 N A N A 2018 Ford Explorer 92 82 10 2018 Audi Q7 100 97 3 2018 Audi Q5 102 108 6 2018 Toyota Sequoia 110 98 12 2018 Nissan Rogue 111 N A N A 2018 Toyota 4Runner 112 119 7 2018 Buick Encore 115 N A N A SOURCE AF RESEARCH DEPT ERCULIANI Element GHOSH ARI