While used vehicle prices remain unusually high, the market is starting its normal seasonal adjustment. Supply is still short, but prices are leveling and even dropping in some segments. This is the norm for the market. Remember, used vehicles don’t usually appreciate.
For several months I’ve been saying, “You should choose the smallest tool that will do the job effectively.” I’ve taken my own advice! Continue reading
The past few months have been difficult for manufacturers dealing with out-of-the norm supply chain issues, fleet managers responsible for ordering vehicles, and fleet management companies trying to find vehicles for existing and new vehicle orders. While we’ve seen some relief as manufacturers begin to ramp up production and some suppliers begin to meet demand, we don’t expect full capacity for quite some time.
Industry challenges
Trying to locate vehicles out of dealership inventory has been challenging, to say the least. Events that occurred earlier this spring in Japan have dramatically impacted factory production of vehicles and parts, resulting in canceled factory orders and an increase in out-of-stock requests. Continue reading
NOTE: Several weeks ago, Donlen asked automotive industry expert Maryann Keller to give us her insight into supply chain issues facing the automotive industry. The original piece (below, labeled as such), scheduled to be posted today, has been updated to include recent events in Japan. We are including both below.
Update on Japan, 3/18/11
The consequences of the earthquake and tsunami have not yet been fully assessed by the automotive industry. The immediate focus was on the condition of assembly plants in the immediate area of the quake. But now automotive companies in Japan, the United States and elsewhere are beginning to understand how difficult and widespread the effects of the disaster will be. US auto plants, already struggling with parts shortages, can expect to reduce production as they use up existing parts inventories. Continue reading
I will not belabor the point on the how the existing economic environment has created a shift in the business atmosphere. Companies, to some degree, have hunkered down and have taken on the practice of austerity. Simply put; trying to make do with what you have. Conventional wisdom cries out to cast aside the established life cycle plans and forgo acquisition of new trucks or equipment. Is this the best practice in applying asset management to truck and equipment fleets?
The answer to that question lies in a review of three facts and circumstances we know to be true. Continue reading