Automotive Fleet

OCT 2013

Magazine for the car and truck fleet and leasing industry

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otd car times Remain Static While Truck OTD Improves Although order-todelivery (OTD) times remained relatively static in MY-2013, there were notable improvements, especially among lightduty trucks and SUVs. Quality holds and recalls impacted some high-volume feet models. BY MIKE ANTICH & LAUREN FLETCHER AT A GLANCE While OTD remained relatively static overall, year-over-year, delivery times were still above the industry average benchmark of 60 days. This was impacted by: ● OEM quality holds continue to impact feet OTD. Many vehicles were held by OEMs for a fnal inspection and rework before being released from the production plant, delaying delivery. ● Superstorm Sandy, which swept through the Northeast and Mid-Atlantic in fall 2012, severely affected vehicle deliveries. ● The rail companies have yet to add back many of the railcars that were decommissioned during the economic downturn, so a general shortage continues across North America. ● Increased feet order volume caused backlogs at upftters. 14 AUTOMOTIVE FLEET I OCTOBER 2013 O rder-to-delivery (OTD) times for the 2013 model-year remained relatively stable when compared to MY-2012; however, there were notable improvements, especially among light-duty trucks and SUVs. While OTD remained relatively static overall, year-over-year, delivery times were still above the industry average benchmark of 60 days. "Certain individual models experienced notable increases or reductions in OTD timing in 2013, but average overall OTD times, across all models, did not change signifcantly from FREUND 2012. In both years, overall averages were above the 60-day industry accepted standard," said Jan Freund, director, manufacturer relations for Wheels Inc. Te key reasons for some OTD delays in 2013 were due to OEM quality holds and transporter-related issues. "Rather than forces outside our industry delaying order-to-delivery times, we found the top infuencers to be within the manufacturer and transportation compa- nies themselves," said Tim McHugh, vice president, supply chain & compliance for ARI. "Tese included supplier commodity constraints, quality assurance/quality holds, recalls, assembly plant downtime, and railcar shortages." Other factors impacting 2013-MY OTD included: ● Weather-related delays. ● Production backlog and delays with upftters, who were working at capacity. ● Lack of timely delivery processing by some dealers. ● Higher overall vehicle replacement volume, due to increased industry demand for the commercial truck and van segment. One of the biggest issues impacting OTD was the improved national business climate. "Overall, there were increased vehicle volumes due to the continued industry growth rate," said Brad Vliek, VP, client solutions for Emkay. Te increased industry order volume was up across the board, but the VLIEK increased volume in some

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