EV Proliferation to Put Downward Pressure on ICE Residuals

The 81st State of the Fleet Industry video produced by Automotive Fleet offers an updated look at the state of the fleet market as presented by AF Editor Mike Antich.

This episode is sponsored by Circle K. Learn more about the Circle K Fleet Card.

Today's topics include: 

• The recent blockade of the Ambassador Bridge indicates that there continues to be multiple choke points throughout the automotive supply chain both here and abroad 
• Product availability constraints is forcing fleets to extend vehicle services lives that is resulting in an uptick in unscheduled maintenance. 
• Fleet maintenance costs have increased with a growing factor being inflationary price pressures on commodity prices and labor rates. 
• Early glimpses from Europe show EV proliferation starting to put downward pressure on ICE vehicle resale values.

⏱ Timestamps ⏱ 

1:20 Supply Chain Choke Point
2:48 250K Lost Production in CY-22
3:43 Inflationary Pressure on Maintenance Costs
4:15 Labor Rate Inflation
4:35 CPI Inflation Highest in 40 Years
4:58 “Market Adjustment” Euphemism
6:16 EV Impact on ICE Residuals

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