As we return to the post-strike world, it will take some time to see the true impacts of three OEMs working with limited production for two months. We will provide updates as we have them. Wheels tracks industry status through weekly meetings, regular conversations with the OEMs, and increased staffing. Navigating the supply chain and providing relevant information to our clients is always a top priority.
Wheels tracks industry status through weekly meetings, regular conversations with the OEMs, and increased staffing. Navigating the supply chain is a top priority in supporting our clients.
Returning to Fleet Sales
We are seeing that some of the OEMs with limited fleet availability in the past few years are beginning to open up options for fleet: Nissan, Hyundai, Polestar, Toyota, VW, Volvo and Tesla are offering some lines to customers. These are, indeed, promising signs.
Availability Varies by Vehicle Type
Additionally, availability is dependent upon the vehicle type needed. Heavy demand for pickups, work vans and hybrid vehicles, which are in limited supply due to battery constraints, will almost certainly cause OEMs to cut off orders early in some cases and extend order banks in other cases. This will most likely continue through MY2023 and possibly into MY2024.
Factory Ordering Update
Some practices of recent years will necessarily continue. Pre-approval and allocations will vary with OEMs dependent upon the model type and client order history. New or adjusted order cutoff dates may be announced with little or no notice. We expect order cutoffs to be earlier than in “normal” order cycles.
OEMs will again be building some vehicles without certain options and accessories due to continued supply chain challenges. As mentioned above, truck, van & EV production will be limited and have shorter ordering windows. We will see longer lead times and buildout production timeframes.
Out of Stock (OOS) Purchases
Dealer inventory is improving but still at half of 2019 levels. Expect the longer timeframes for sourcing OOS units to continue. Vehicles with higher equipment specs have the most availability. Since dealers may be unwilling to sell their limited inventory to fleet customers, their pricing will often be over MSRP.
Rising Prices Will Continue
All these factors, as they have in recent years, will result in higher prices and lower incentives across all OEMs. Our expectation for price increases is 3-10 percent YOY. Expect multiple price increases throughout the model year, lower client incentives from all OEMs and few, if any, price protections. Even with dealer inventory slightly increasing, dealers are expected to continue commanding full or close to MSRP pricing.
Persistent Delivery Delays
And as we’ve detailed in previous articles, logistical problems such as the tight labor market and railcar shortages continue to impact delivery of all vehicle types to drivers. The long-term impact from the pandemic is still being felt in our industry—the volume of delivered vehicles in dealers’ lots is steadily rising.
Ordering Updates by OEM
| OEM | Update |
| GM MY2024 | All MY2024 ordering will be by pre-approved allocation. Lists of approved customers has been distributed to Client teams. GM has indicated that in Q3 of this year they will determine allocation for Wave 2 of MY24 vehicles for vehicles to be produced in calendar year 2024. |
| Ford MY2024 | MY24 Ordering and allocation will now be based on a semi-annual order/production cadence. Order > schedule > purge process will happen 2x per model year. Customer allocations will be given based on 2 production windows. Ford Pro will also set semi-annual ordering caps to limit the number of orders customer who’ve not received an allocation can have placed. Please Note: The acceptance and verification of an order does not guarantee that said order will be scheduled and produced. Additional vehicle lines may be included in the allocation/order cap program in MY24. Many customers may be granted a CPA in the 2024MY/PY and NOT receive dedicated production allocation for some/all vehicle lines in the agreement. These customers can order under their 56A program via the semi-annual cap volume program. Please Note: the presence of a CPA does not indicate that a customer has received dedicated production allocations for any model included in the agreement. The Ford Pro Order Verification Program will remain in place for the 2024MY/PY. All orders placed for customers with a 2024 CPA Agreement in place do NOT have to be verified, regardless of 56A or 56M status. All orders placed for customers that do NOT have an active CPA in the 2024MY/PY will require verification via the FPOVP website. Government customers will also fall under allocation and verification in the 2024MY/PY. |
| Stellantis MY2024 | Stellantis will not have any pre-approved allocation process. Several MY24 models opened for ordering in June with the remainder available in August. Vehicles being discontinued: ProMaster City, Cherokee (Compass is the replacement) and DS 1500 (last production date 12/23). Stellantis Canada has released specs and pricing on some MY24 models. |
| Toyota MY2024 | Toyota has provided lists of clients approved to order so far which was shared with the account teams. Toyota has also announced that some models will be available for any Toyota customers to place up to 30 orders in MY24. The models are: The models are: 4Runner, Highlander Gas, Tundra Hybrid. Effective March 6, 2023, Toyota will resume issuing Fleet IDs with the understanding that this does not guarantee the availability of any MY23 or MY24 production for your company. |
| Subaru MY2024 | Subaru is restricting all models to approved clients only for MY24. Subaru has provided a list of models and the list was distributed to client team. MY24 Subaru ordering opens on 3/31/23 for all models except Ascent and Forester. For Canada, Subaru is restricting all models to approved clients. Subaru is not accepting new fleet customers. Models are available in our system. |
| Nissan MY2024 | Clients should be working directly with their Nissan rep to confirm their MY24 needs. Nissan will not be providing Wheels with a list of approved customers. For Canada, MY24 specs and pricing are available in our ordering system. |
| Hyundai MY2024 | Hyundai will provide limited fleet allocation for MY 2024. However, it is important to get allocation and production commitment from Hyundai sales manager. MY24 information available in July. |
| Volkswagen MY2024 | MY24 VW ordering is open without restrictions for now. VW is expected to share a list of clients approved for ordering. Incentives were just announced. Will be a flat amount per model for all customers. Early order incentive of $250 expires July 31st. For Canada, there are no incentives–client or National fleet; no price protection. |
| Volvo MY2024 | MY24 models are available to order in our system. Pricing is loaded as well. |
| Audi MY2024 | The following models are NOT available for fleet ordering: All RS Models (RS3, RS5, RS6, RS7, RSQ8) Etron GT/ Etron GT RS R8/R8 Spyder S6, S7, S8 SQ7, SQ8 Etron S, Etron Sportback S Q4 E-tron Audi expects MY23 ordering to continue through May/June. For Canada, these models are not factory orderable. |
| Mazda MY2024 | Models are available in the US. Very limited allocation in Canada; customers need to work with Mazda reps to get allocation. |
| Mercedes MY2024 | Models are available in the US. Mercedes – US National Fleet incentives are availableNot factory orderable in Canada |
| BMW MY2024 | Models are available in US. US national incentives available. Not factory orderable in Canada |
The essential steps to prepare for factory ordering
Being proactive will increase your success in MY2024 ordering. There are steps that you can take to be prepared for ordering when the time comes.
- Reach out to your OEM rep NOW!
- Don’t take your OEM allocation for granted – preference will be given to existing customers.
- Finalize your OEM incentive programs now.
- Collaborate with your Wheels rep to get your OEM info (especially Ford).
- When specs are available, work with your Wheels rep to prepare and place orders.
- Refer to FleetView/FleetWeb for the latest updates on MY2024 ordering and production
- ORDER EARLY – order cutoffs will remain volatile.
Be Aware
Vehicles with upfit could experience delays as upfit lead times have increased and production dates and lead times will continue to evolve throughout the year. For out-of-stock orders, expect high prices, low inventory and longer timeframes. To increase your OOS options, decide on “must have” vs. “can’t have” equipment and colors—don’t expect to purchase vehicles that are a perfect match. Once a vehicle is located for you, approve it quickly. A delay will lose the vehicle.
Unfortunately, vehicle delivery delays continue. This is due to industry logistics that are severely constrained, making it difficult for any OEM or supplier to provide concrete delivery dates.
We Work on Your Behalf
As always, our plan is to be proactive and get you the information that you need. Wheels continues to work on your behalf through engagement with OEMs regarding allocation and production, weekly delayed order reviews, weekly executive leadership meetings, increased staffing to acquire out of stocks, and by rapidly updating our systems with order status. If there is one very vital piece of advice that we can offer, it is to order early—get your orders into the pipeline. Reach out to your OEM rep and don’t take your allocations for granted.