New car supply issues worsening for fleets, warns AFP
Fleets are still being hit by major new car supply issues, causing increased operational disruption across the sector and forcing new ways of working.
The AFP says the new car supply situation is worsening, and it remains extremely patchy for almost all
In many cases, the supply situation is worsening, and it remains extremely patchy for almost all, the Association of Fleet Professionals (AFP) has reported.
There’s no signs of improvement either.
“Some fleet managers are telling us that drivers are having to go through the process of choosing a new car half a dozen times before finding one for which a manufacturer will even provide a production slot – and that date is likely to be a year or more away,” warned AFP chair Paul Hollick.
“Other manufacturers have closed their order books either completely or for certain models.”
He added: “Even when cars can be obtained, they are often being delivered without meeting the order specification. The wrong colour is fairly commonplace but equipment is often missing – parking sensors seem to be a particular issue – with no resulting adjustment in price.
Hollick’s comments are backed up by latest new car registration figures showing that UK new car registrations fell 24.3% last month, putting in their weakest June performance since 1996 as the supply shortages continued to “shackle” the market. New car registrations to larger fleets fell more than a quarter (27.6%) while ‘Business’ registrations to companies with fewer than 25 vehicles dropped 5.3%.
And while the SMMT data showed EV take-up rose 14.6% last month, the AFP warned that supply problems “can generally be doubled for EVs”.
Hollick also said the PHEVs have become very difficult to acquire; production seems to be being skewed away from them towards EVs, probably because of CAFE regulations.
As a result, fleets have little choice other than to continue operating their existing cars for as long as possible.
But with new car shortages now in their second year, the AFP warned of increasing pressure on managers.
“The situation creates two sets of problems. The first is that the car is ageing and difficulties with keeping it on the road in a cost-effective manner increase over time. Some cars are now being operated into their fifth year and will probably still be on the fleet in their sixth because they cannot be replaced. These are unchartered waters in maintenance terms.
“The second is an employee satisfaction issue. Drivers who are keen to move into EVs but simply cannot get hold of the right model are having to continue to pay Benefit-in-Kind on ageing and increasingly unattractive diesel models, with no solution in sight. There is no easy answer to this situation, and it does cause some disruption.”
Hollick added that AFP members had become adept at swapping information about vehicle availability during the last year or so.
“One of the key advantages of AFP membership is the ability to network extensively with fellow professionals and there is certainly much conversation taking place at the moment about when and where cars are becoming available.”
The AFP also warned that fleets need to brace themselves for disruption in the longer term.
“It is very difficult to know when the underlying supply issues will start to noticeably improve but with the degree of order backlog that exists, we don’t expect to see any real change for at least a year or probably longer,” stated Hollick.