Relationships between fleets and motor manufacturers have degenerated to hit an “all-time low”, according to the Association of Fleet Professionals (AFP).

Issues reported by fleets include orders cancelled close to delivery and not being able to get hold of representatives from major car and van makers

Major issues reported by its members include orders cancelled close to delivery – leaving fleets “high and dry” – and not being able to get hold of representatives from major car and van makers.

Alongside this, there’s a suspicion that large fleets are often being placed last when it comes to allocating stock – an issue already seen in registrations figures over the last year, when  manufacturers put emphasis on higher-margin retail customer sales amid vehicle shortages.

Paul Hollick, chair at the AFP, said the issue seemed to be getting worse rather than better – and that while ongoing production issues were affecting almost every manufacturer, no-one could comprehend why this has “seemingly caused a complete breakdown in responsibility and communication”.

He added that with a couple of possible exceptions, it’s the same story for almost every manufacturer.

“Placing orders is difficult because you can’t get hold of the right people to do so, getting subsequent updates on those orders is often impossible and finally, these orders are often pulled at the last minute with no explanation.

“We are hearing regular stories from across our membership about orders for dozens or even hundreds of cars and vans being cancelled more than a year after they were first made and within weeks of when they were due. This leaves fleets high and dry. It’s having a direct impact on businesses that need transport and, on a personal basis, potentially damages the perception of the fleet manager within their business.”

Hollick warned of growing ill feeling and said there was even talk of organising boycotts of some manufacturers.

“As an organisation, we don’t think any form of boycott would be an effective strategy but the fact that such an idea is being raised just shows the strength of feeling. A refrain we hear time and again from fleets is that, once supply returns to some kind of normality, the worst-offending manufacturers will not be easily forgiven and our members will not work with them in the future where a choice exists. Relationships feel at an all-time low.”

A further point of contention is a seeming priority by manufacturers to retail customers and small fleets over large-scale buyers of vehicles.

“Especially for certain types of more fashionable vehicle, it seems that it is easier to get hold of supply if you are a private individual or if you run 10 vehicles rather than if you run a thousand. This is something that makes no sense whatsoever – especially at a time when fleets are often paying something very close to retail prices.

“It’s a common complaint that before the pandemic, fleet managers were pursued by manufacturer reps on a daily basis and now, they haven’t heard from any in years. That’s not a basis for responsible, long-term partnerships.

“Manufacturers should realise the damage they are doing and change their approach as quickly as possible.”

Chinese contenders could shake up market

One development that could shake up the market though is the arrival of Chinese carmakers on the UK market.

New brands already entering the UK market or coming soon include BYD, Great Wall Motors’ Ora and Wey brands, and Nio.

Shoreham Vehicle Auctions (SVA) has said that their arrival should see UK new car supply improve over the course of 2023 as incumbent OEMs react and increase production capacity as the semiconductor shortage lifts.

Other industry experts have said that the advent of the new brands could start a pricing war on EVs and new ways of thinking.

Speaking earlier this month, Aston Barclay said the new arrivals should fare well in the fleet and used markets, based on lower costs and lead times, replicating the success seen by MG.

Chief revenue officer Mark Hankey said: “The lead times for Chinese ICE and EV products are relatively short, which suggests if fleets can get hold of the cars, they will add them to choice lists.

“Fleets will also look forward to offering their drivers new EVs at sub-£30k prices where the majority of EVs have generally retailed at more than £50,000 up until now,” he added.

While many manufacturers are currently prioritising retail and leasing sales, Aston Barclay expects the new Chinese brands to build awareness through rental, as successfully done by MG. And this could mean some of the new Chinese brands reach the nearly new used market during 2024 and early 2025.

Hankey also thinks they’ll get an enthusiastic response on the used market. “Buying a Chinese used car doesn’t seem as though it will be a compromise as the success of brands such as MG in the used market can confirm.”

Meanwhile, Grant Thornton has said that the debut of the new marques could drive down prices. Writing in the latest edition of Cox Automotive’s AutoFocus digital magazine, Owen Edwards, head of downstream automotive at Grant Thornton UK LLP, said there was evidence that Chinese brands were taking the pricing war not only to BEVs but also to ICE vehicles.

“With China’s advanced battery technology, sourcing of raw materials and more advanced BEV supply chain, Chinese OEMs can manufacture BEVs at €10,000 cheaper than European automakers, representing a significant cost advantage,” he explained.