Virus Impacts Fleets

By Staff Writer July 01, 2020 484

The coronavirus pandemic has had a significant impact on the fleet management industry, resulting in a sharp reduction in vehicle sales across the world, according to Beroe Inc., a  provider of procurement intelligence and supplier compliance solutions.

As manufacturers return to production, global automotive sales forecast is revised to 20 percent reduction from the previous forecast of 22 percent, with sales of approximately 72 million units, according to Beroe Inc.. The impact of COVID-19 is high on car manufacturers and alternate mobility, and medium on leasing companies.

Car manufacturers in the U.S. and Europe are returning to production with limited capacities and adequate health safety measures, according to Beroe. There has been a slow resumption of fleet activities across the globe, majorly by the essential service operators. It is almost certain that the demand for fleet vehicles has reduced worldwide. OEMs are expected to offer high discounts, as the residual value is likely to reduce. Lease prices are expected to go up as residual values and profitability reduce.

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Last modified on Wednesday, 01 July 2020 14:18