Automotive Fleet

OCT 2013

Magazine for the car and truck fleet and leasing industry

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ORDER-TO-DELIVERY 2013 ORDER-TO-DELIVERY TIMES: SUVS CROSSOVER/SUV MODELS vehicle acquisition services for Donlen. "However, as the model-year progressed, OTD times seemed to improve." Two vehicle segments that showed the greatest GOMEZ improvements in OTD times were trucks and SUVs. "In reviewing the data from MY-2012 to MY-2013, there was signifcant improvement from order-to-delivery with cargo vans and utility trucks. In some cases, manufacturers improved time spans by as much as 30 days. Tese tighter time frames created a better ordering experience for our mutual customers, as we are more in line with our original past lead times of 10-12 weeks for these vehicle types," said Groth of GE Capital Fleet Services. Te faster delivery times for light-duty trucks and SUVs in the 2013 model-year was also cited by PHH Arval. "Overall, 2013 was another model-year where we realized improvements to orderto-delivery times, particularly to key truck and SUV models," said Kokos of PHH Arval. "Although there was some variability among the manufacturers and delays throughout the model-year for some models, the motor companies showcased improvements to both production efciencies and cycle times. Tis was critical, since demand in these segments continues to show growth." Agreeing was LeasePlan USA, which made a similar observation. "We saw an average improvement in the truck KELLY Fastest OTD – Crossovers/SUVs 40 DAYS 18 AUTOMOTIVE FLEET I OCTOBER 2013 2013 BMW X5 2013 Jeep Compass 2013 GMC Acadia 2013 GMC Terrain 2013 Dodge Durango 2013 Buick Enclave 2013 Chevrolet Equinox 2013 Chevrolet Traverse 2013 Jeep Grand Cherokee 2013 Dodge Journey 2013 Jeep Patriot 2013 GMC Yukon 2013 Chevrolet Captiva 2013 Chevrolet Suburban (combined) 2013 Ford Flex 2013 Ford Explorer 2013 Cadillac Escalade (ESV & EXT) 2013 Chevrolet Tahoe 2013 Mercedes-Benz GL Class 2013 Toyota RAV4 2013 Ford Expedition 2013 Ford Edge 2013 Volvo XC 90 2013 Ford Escape 2013 Mercedes-Benz M Class 2013 Toyota Highlander 2013 Subaru Forester 2013 Audi Q7 2013 Audi Q5 2013 Toyota Sequoia 2013 Toyota 4Runner and crossover segments by more than seven days. Te van segment remained unchanged year-over-year," said Elizabeth Kelly, director of operations, vehicle acquisition for LeasePlan USA. Quality Holds Continue to Impact Commercial Fleets in MY-2013 As has been the case for the past several model-years, OEM quality holds continue to adversely impact feet OTD. "Many vehicles are held by the manufacturers for a fnal inspection and, if necessary, reworked, before being released from the production plant," said Freund of Wheels. "Several automakers have a 'build and hold' practice in place for the introduction of all newly redesigned models. Typically, the delays are extended when suppliers are unable to provide a quick fx and deliver new parts. Tis can potentially cause a buildup of inventory at assembly plants and outside storage yards, resulting in shipping delays." Tis was especially the case with sever- 2013-MY OTD (DAYS) 40 49 51 51 52 53 53 53 54 57 60 60 60 60 62 64 65 66 69 69 70 72 72 73 77 81 85 96 98 101 118 2012-MY OTD (DAYS) 34 69 53 50 56 48 60 50 68 63 56 57 72 52 70 79 64 59 54 83 61 80 67 83 63 85 85 90 N/A 117 114 CHANGE (DAYS) 6 -20 -2 1 -4 5 -7 3 -14 -6 4 3 -12 8 -8 -15 1 7 15 -14 9 -8 5 -10 14 -4 0 6 N/A -16 4 al high-volume feet vehicles, popular with commercial feets. "Te redesigns of a few popular vehicle lines impacted the cycle time as the manufacturers held vehicles to monitor for quality assurance," said Groth. Quality holds were most common with redesigned models. "LeasePlan USA experienced delays of new-model vehicles as a result of quality holds. Contributing factors were the introduction of redesigned models to the market and regulatory inspections," said Kelly. An example of a redesigned model experiencing quality holds was the Nissan Altima. "For certain models, quality holds were indeed an issue. Nissan, for example, experienced some production and delivery delays with the new Altima," said Freund. A variety of other models were also impacted by quality holds. "Material and quality holds played a major role in several delivery delays for modelyear 2013. Models impacted this year were the Lincoln MKZ, Ram 1500 Quad and

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