Fleet managers need to keep many balls in the air at the same time in their everyday business. The demands—some might sooner call them challenges—on this position and on companies are not diminishing. We read about the automotive industry in the press every day—it is not uncommon for us to break a sweat, given the current headlines. Why? Let’s take a look at a section of the market situation and how fleet managers can (re)act now.

These days, hardly anyone is able to predict how prices or delivery conditions in the automotive industry will play out in the coming weeks and months. This strain on fleets is reflected above all in prices and in vehicle procurement. Manufacturers are increasing prices, in part dramatically, or reducing current discounts. Due to the semiconductor crisis, some individual equipment features are also being left out. And that’s not all. Long delivery times and model changes after orders have been placed are the order of the day.

Last but not least, costs add up due to an interest rate adjustment by lessors. This development is only partially compensated by the situation on the used car market and a shift in residual values. If you want to plan ahead, you should be prepared for possible increases in leasing rates.

For fleet managers, it is advisable to maintain good relationships with manufacturers, lessors, fleet managers and dealers. This way, the immediate consequences for budgeting and the acquisition process can be discussed and the outcomes better assessed.

Looking at the entire lifecycle of the vehicles, there are also bottlenecks in the areas of maintenance, damage, tires and rental cars. Some garages can only offer appointments with a lead time of six to eight weeks. In some cases, it is hard to get an appointment at all— individual garages may already be fully booked. Here, too, several factors are at play. Supply bottlenecks, lack of spare parts, corona-related staff shortages are just a few. If a vehicle suffers damage, rental cars as replacement vehicles are often scarce or it may be tricky to find a rental car at the spur of the moment. If a rental vehicle is needed, you may just have to switch to a smaller vehicle class. Non-safety-relevant accident repairs could be moved to the back of the line. So good prioritization is required here. With winter tires as well, you have to keep an eye out and plan carefully for the beginning of winter.

As always, we recommend our customers be realistic, i.e. seek discussions with partners at an early stage and to work out solutions for the current situation. The upshot of all these challenges is that flexibility remains key. With a strong leasing partner and fleet management, leasing contracts without a fixed term, transparent services and direct communication, you can manage well together and plan for the future.