The Implications of COVID-
19 on the Fleet Industry
The O ld Schoo l House , Chape l
S t ree t , Be lper , Derbysh i re , DE56 1AR
sa le s@chev in f lee t . co . uk
The coronavirus pandemic has had a significant impact on the
fleet industry, with implications on various subsectors. Lockdown
measures and travel restrictions in the early months of the
pandemic partly paralyzed the industry due to the decreased
number of vehicles on the road.
The COVID-19 outbreak brought numerous challenges for the
industry, from cash flow concerns to manpower shortages. Fleet
management companies are forced to cut costs and redesign
their business models to cope with these problems.
The lockdown also applied to the entire automotive ecosystem,
shutting down Original Equipment Manufacturer (OEM) assembly
plants and component supply chains. The shutdown brought an
abrupt stop to new-vehicle productions and vehicles, which
caused problems for fleets.
In some cases, fleet orders and assembled vehicles were
stranded in the assembly line or product deliver pipelines. Truck
upfitters also experienced component shortages, which caused
difficulties in terms of repairs and vehicle maintenance.
Additionally, the COVID-19 hit during an economic recovery.
Many fleets were in the middle of expanding vehicle count or
replacing old units in preparation for the economic boom. The
new-vehicle production shutdown also forced fleet management
companies to cease their expansion plans.
OEM New Vehicle Production
Some fleet management companies were
forced to lay off employees. This decision
helped cut costs, but presented new
problems in the form of manpower
Reduced, Scattered Staff
Many firms decided to transition to remote
work arrangements to maintain their
operations. However, the starting and
congregation points for fleets became
scattered as drivers started working from
their homes. The remote work setup made
it difficult for fleet managers to track their
vehicles and people.
Decision-makers are looking into r