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 (978) 540-9970 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 shortages. 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 right-sizing as a long-term solution. Underutilized equipment and staff only increases their operating expenses. Letting go of these assets helps generate funds for other purposes. Some companies are considering leasing and other alternative financing opportunities to reduce their operating expenditures. Fleet management systems and other similar software are also being considered to help streamline fleet efficiency and raise cost savings. https ://www.chev in f leet . com/gb/so lut ions/asset- management-sof tware/ ht tps ://www.azuga .com/blog/cov id-19- impact- to- f leet - indust ry ht tps ://www.automot ive- f leet . com/10118279/the-cov id-19- pandemic-created-the-greatest -d is rupt ion- in- the-h is tory- of - f leet ht tps ://www.prnewswire . com/news-re leases/coronav i rus- impact-on- f leet -management-beroe-ana lys is - 301085637 .html Sources :