What Will the Crisis in Japan Mean For Fleets?
My prayers go out to the people of Japan and their families as the devastation from last weeks earthquake and tsunami becomes more apparent. The loss of life and damages to lives is almost more than many of us can understand.
There is a question that is relevant to fleet managers in this time of crisis as well. What will this do to fleet vehicle availability, pricing, and ordering for the near future? The title link takes you to an article today describing the immediate impact on many of the Japanese manufacturers. So far the shut down is temporary, but additional questions remain about the power and infrastructure damages that have been sustained. There is potential for long-term reductions in vehicle availability from several of the Japanese auto manufacturers.
In this photo from AFP/Getty damage to vehicles waiting shipment is vividly brought to life. Nissan and Infiniti state they have seen damages to at least 2,300 vehicles that were pending shipment. Others are sure to follow with similar damage reports once the cleanup process gets underway.
Japanese vehicles are used less in American fleets than domestic manufacturers products, but there may be a significant effect anyway. If vehicle availability is down, retail customers are likely to look at domestic alternatives to the Japanese vehicles they otherwise might prefer. Incentives on the Japanese products are likely to be eliminated or reduced until supplies are restored to normal levels. The domino effect of this availability issue is the increased demand for American vehicles in the short term by retail customers.
Fleet managers are likely to see an increased lead time, decreased availability, and possible a slight rise in pricing on some domestic vehicles. Combined with the current rise in fuel prices, expect smaller, fuel efficient vehicles from GM and Ford to become more desirable to the public and less available to the fleet this summer.
There is a question that is relevant to fleet managers in this time of crisis as well. What will this do to fleet vehicle availability, pricing, and ordering for the near future? The title link takes you to an article today describing the immediate impact on many of the Japanese manufacturers. So far the shut down is temporary, but additional questions remain about the power and infrastructure damages that have been sustained. There is potential for long-term reductions in vehicle availability from several of the Japanese auto manufacturers.
In this photo from AFP/Getty damage to vehicles waiting shipment is vividly brought to life. Nissan and Infiniti state they have seen damages to at least 2,300 vehicles that were pending shipment. Others are sure to follow with similar damage reports once the cleanup process gets underway.
Japanese vehicles are used less in American fleets than domestic manufacturers products, but there may be a significant effect anyway. If vehicle availability is down, retail customers are likely to look at domestic alternatives to the Japanese vehicles they otherwise might prefer. Incentives on the Japanese products are likely to be eliminated or reduced until supplies are restored to normal levels. The domino effect of this availability issue is the increased demand for American vehicles in the short term by retail customers.
Fleet managers are likely to see an increased lead time, decreased availability, and possible a slight rise in pricing on some domestic vehicles. Combined with the current rise in fuel prices, expect smaller, fuel efficient vehicles from GM and Ford to become more desirable to the public and less available to the fleet this summer.
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