How to align your global fleet strategy in North America
By Daniel Bland - May 17, 2021 (Twitter @DanielBlandBiz) GlobalFleet.com-FleetLatAm.com
The experts at the Global Fleet Conference agreed: North America boasts a mature fleet market with a strong appetite for telematics and connected car technologies but there are a few challenges when it comes to preparing your global fleet policy in the region. What are they and how can we overcome them?
Supported by expert opinions from last week’s Global Fleet Conference, below is a snapshot of the fleet profile in the United States and Canada, followed by a few tips about aligning your global fleet strategy in the region.
North America, Leasing
In 2019, just before the start of the COVID-19 pandemic, commercial vehicle sales in the US represented a US$12.8bn market and Canada was about 10% of this.
The main vehicle leasing and fleet management players in the region are Element Fleet Management, LeasePlan, ARI, Wheels, and Enterprise Fleet Management, although several other suppliers are available.
Financing, maintenance, collision management, driver safety, and vehicle registration services are used in leasing contracts but keep in mind that the model of choice is open-end. Services are normally charged as you go and the risk of residual value lies with lessees so procurement teams plan your vehicle acquisitions with due diligence.
Although depreciation risk is put on lessees, terms are more flexible as more options are available at the end of contracts. In general, leasing and fleet management is on the rise.
“The fleet management solution market has been robust lately, and its value is expected to increase by approximately three-fold by 2026,” North America Fleet Management Association NAFA Vice President David Hayward said during the Conference.
However, according to Vinzens Pflanz who is President of Corporate Sales for mobility services company SIXT, personal vehicle usage could shrink. “I feel that it will be replaced by other mobility services which are more related to sharing, renting, and ride services,” added Mr. Flanz in a panel discussion.
As for the vehicle brands of choice, among the main ones are Ford, Toyota, Honda, Chevrolet, Nissan, Hyundai, BMW, and many others.
Electrification
Regarding electrification, North America is behind China and Europe but several new electric vehicle (EV) models are being introduced and most OEMs are claiming to be predominately electrified from 2030-2035. This also includes models from newer names such as Polestar, Rivian, Lordstown, Workhorse, Elms, as well as Tesla. Electrified trucks and vans are among the newest growing trends of today.
Multinational companies are also being pressured to be more sustainable nowadays, so this reflects on the possible implementation of EVs.
“One of the key drivers to keep in mind when developing our fleet policy is sustainability or to say reducing CO2 emissions. The others are safety (GPS monitoring) and mobility (flexible solutions). We are piloting EVs now but its more of a future plan,” said Rachel Johnson who is Fleet Specialist in the Americas for Konecranes lifting equipment company.
Ms. Johnson manages 1,100 vehicles in the US and 160 in Canada, summing up to approximately a third of the company’s global fleet. Konecrane uses an open-end lease offered by a single company which supplies light duty tool trucks with upfitting as well as SUVs. Read more here...