Athene is the lead investor in the new mega company, consolidating two of the most well-known fleet companies in the world.
While OTD remained relatively static overall, year-over-year, delivery times were still above the industry average benchmark of 60 days. Quality holds and recalls impacted some high-volume fleet models.
Maria Neve has joined Merchants Fleet Management as its government sales manager. Neve joins Merchants with more than 12 years of experience in sales and operations roles in the government fleet management marketplace.
As John F. Kennedy once said, “History is a relentless master. It has no present, only the past rushing into the future. To try to hold fast is to be swept aside.”
Key factors causing OTD delays were increased vehicle volumes due to continued auto industry sales growth, lengthy quality holds, parts shortages, ongoing railcar shortages, recalls, plant changes, and weather-related issues.
Last April’s earthquake in Japan and subsequent tsunami disrupted the automotive supply chain, causing parts shortages, which delayed order-to-delivery times. Extreme weather conditions also impacted vehicle shipments.
Stable fuel prices were the primary reason fleet costs remained flat. Also, national accounts did not increase prices for oil changes and replacement tires. Maintenance costs were up for fleets that extended vehicle cycling.
OTD was affected by plant closures due to Chapter 11 reorganizations by GM and Chrysler, an economic downturn that decreased fleet and retail sales, and shipping delays caused by less-than-full loads for railcars and transporters.
Diverse vehicle selectors offering multiple makes and models are relatively common among European corporate fleets. Could the future hold the same for the U.S. fleet market over the next decade?
This was an interesting order-to-delivery year. A protracted UAW strike and flooding in the Midwest delayed some models, while others posted improved OTD due to reduced retail sales, which expedited fleet production.
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