Model Year 2022 Acquisition Challenges & Planning
By Sheryl Sawyers
July 29, 2021
Mask mandates are being lifted and workplaces are opening, yet major OEMs are still behind in their production schedules. Demand for new vehicles, especially trucks and vans, is extremely high while dealer inventory is at historic lows. With the chip shortage expecting to last at least through the end of the year, acquiring MY22 vehicles will be likely as difficult as the past two ordering cycles.
To facilitate an easier ordering process, we’ve compiled information regarding factory and out-of-stock ordering for MY22. But first, here are our top three tips:
- Expect challenges: Supply chain uncertainty will continue into MY22.
- Plan it out: Refine your acquisition strategy for all vehicle needs.
- Order early: The 2022 model year will be short and lead times will be long.
MY22 Factory Ordering Of Fleet Vehicles
As soon as MY22 specs are available, get your orders in the pipeline. Plan to order everything during the fall order cycle since there may not be a spring order cycle due to early cutoffs and limited production and allocation. Production dates and lead times will continue to evolve throughout the year. Orders placed just prior to the cut-off date often experience even longer lead times as assembly plants balance orders through the remaining production schedule.
- Reach out to your OEM rep now, especially for models that require prior approval.
- Expect OEM reps to give preference to existing customers.
- Finalize your OEM incentive programs now.
- Production of sedans, SUVs and EVs will return to “normal” capacity.
- Truck and van production will be hardest hit by supply chain constraints.
- Vehicles with upfitting could experience further delays as upfit lead times may have increased as well.
- Cut-off dates will be earlier than normal, especially for vans and trucks.
- New or changed order cutoff dates can be announced with little to no notice.
MY22 Out-of-stock Vehicle Purchases
Don’t rely on out-of-stock vehicles to fulfill shortfalls in other acquisition methods as prices will be high and inventory low. Provide “must have” and “can’t have” equipment and colors to make sourcing alternatives easier. Expect to purchase vehicles that don’t exactly match equipment, color and price requests.
- Anticipate longer timeframes to source units.
- Expect located units to have higher level of equipment
- Dealers may be unwilling to sell limited inventory to fleet customers which impacts our ability to secure a vehicle that exactly matches your request.
- Plan for increased pricing, often over MSRP.
Pre-approved Allocation For General Motors (GM)
Please be advised that GM is requiring pre-approved allocation for certain models, as outlined below. If you haven’t already, please discuss your allocation needs with your GM fleet representative to ensure your orders will be accepted. Even with pre-approved allocation, we recommend placing orders as soon as possible to ensure they can be produced. Lead times are expected to be longer than in previous years.
Order Banks Open: 8/12/2021
- Full Size Trucks (Silverado and Sierra) LD (1500) and HD (2500/3500)
- Mid-Size Trucks (Colorado and Canyon)
- Full Size Vans (Express and Savana)
- Full Size SUVS (Tahoe, Suburban, Yukon/XL and Escalade)
Wheels Help With Vehicle Allocation
Our team is having regular conversations with OEMs regarding allocation and production. And we’re meeting weekly to prioritize delayed orders.
Work closely with your Wheels Account Team on policy and parameter changes, alternative vehicle evaluations and more to ensure that you’re able to respond to these supply chain challenges.