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How to prepare fleet budget in uncertain times?

5 November 2021

How to prepare fleet budget in uncertain times?

Fleet management in uncertain times is a complex undertaking. How to go about the preparation of your fleet budget?

The problems caused by the shortage of semiconductors (silicon chips) have been subject to much media coverage in the last couple of months. As reported earlier this year, this problem is not likely to resolve on the short term, because of different factors, such as the complexity of semiconductor manufacturing and the increasingly sophisticated chips needed in auto design. In addition, steel prices have increased by +200% in 2021, also instigated by the flow-on effects of COVID-19, creating a perfect storm of high demand and low supply. On top of that, cost increases in container shipping are reported to be in the range of +300/+500% versus last year. Because of the aforementioned price increases, impact on the fleet budget should be anticipated. In the meantime, new COVID outbreaks are being reported across the globe as we speak..

Due to these unfavourable market conditions, price adjustments are expected from most manufacturers. Some of them have indicated plans of capping or lowering discounts for 2022. Delivery times are increasing to an average of six months, and for PHEVs and BEVs sometimes even up to 10-12 months. It is clear that the automotive industry is going to though times, and the parts problem is expected to continue into at least the second quarter of next year.

Do you want to kick-start your fleet budget preparation for 2022? Are you uncertain to how best avoid cost overrun and vehicle offering disruption?

Get in touch with us or schedule a non-binding info session to explore your options.


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