November Fleet Sales Results Mixed, Still Up YTD
Bobit releases the latest aggregate numbers for specific fleet sectors as total sales look to close out 2023 well ahead of last year.
Bobit releases the latest aggregate numbers for specific fleet sectors as total sales look to close out 2023 well ahead of last year.
The recent Fleet Forward Conference presented updates to the fleet, used vehicle, and electric vehicle supply and demand.
Analysis: Slowing EV adoption, an expensive UAW labor contract, and higher consumer interest rates will diminish the profits and gains of recent years.
The latest numbers add up to a gutpunch for the resale values of used electric vehicles as the early adopter market for EVs taps out and mainstream vehicle buyers remain cautious.
Culminating in over 45 days on the picket line, members at each of the Detroit Three have approved new contracts in favor of the UAW.
Wholesale used-vehicle prices decreased 2.3% in October from September and were down 4% from a year ago.
Supply chains have stabilized while market headwinds from high interest rates and high prices are muting sales.
The latest collective figures from the Detroit Big 3 and the Asian Big 6 show a dip in October but sales are still up by a third for the first 10 months of 2023.
While the UAW strike has slowed output at auto factories nationwide, the fallout has not fully hit consumers in dealer showrooms.
With a starting focus on operational leasing and fleet management, the company will review opportunities to include subscription products, car sharing, and a shorter-term rental business.
Since the labor actions started Sept. 15, the U.S. has ample inventory for now from the Detroit automakers that should keep steady supply through the end of the month. The all-important Ford F-150 had 97 days of supply at the start of October.
Analysis: The actions of the UAW will reverberate through the larger auto business, but nowhere near what was experienced in April 2020. Sales into fleet could suffer in 4Q if a strike is wide and persists. Rental car companies may return to the used car market like they did in 2021 and 2022, driving prices higher.
The United Auto Workers contract with the Detroit Big 3 automakers expires Sept. 14 as new inventory remains 68% above last year's level.
The autonomous vehicles will serve the fare-paying public in a 193-square mile area following a series of trials and tests.
This summary covers the upgrades and improvements to multiple Hyundai models, including the new Kona and Kona Electric.
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