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.
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.
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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.
Fuel costs, the largest fleet operating expense, declined dramatically in the 2009 calendar-year due to a sharp decline in worldwide consumption. Also, many fleets have downsized, which contributed to a lower overall fuel spend.
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.
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