Month: June 2020

RALEIGH, North Carolina, June 30, 2020 /PRNewswire/ — The coronavirus pandemic has had a significant impact on the fleet management industry, resulting in a sharp reduction in vehicle sales across the world. Car manufacturers are exploring contactless delivery through online booking channels.

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, a procurement intelligence firm. 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. 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.

https://www.beroeinc.com/category-intelligence

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on market intelligence platform Beroe LiVE: live.beroeinc.com

Demands from organizations have reduced as there is limited business activity. The economic impact of the pandemic is visible with organizations preparing strategic cost saving plans. Organizations with vehicle assets are considering sale and lease back options to improve cash flow. The B2C segment is affected the most now, some of the organizations are inking fresh deals as they are able to obtain good deals. If the pandemic continues, leasing companies are expected to face payment default risk from SMEs and private lease portfolios.

The residual value of vehicles are expected to go down in the coming months as car manufacturers are expected to offer high discounts. Economic challenges are visible, which can stand as a hindrance to demand for fleet vehicles. Organizations are expected to extend their buying cycles by holding on to their assets for a longer period of time while leasing companies are expected to support this by offering contract extensions. OEMs are accepting new orders while production orders are being evaluated for delivery (units, timeline) adjustments.

Key Findings: 

• As new leasing activities are slowly resuming, there will be extended lead times, and leasing companies are also offering contract extensions to retain customers. Profitability is expected to reduce, and this in turn, will have an impact on lease prices in the future.
• Organizations can swap high mileage cars with low mileage cars, which can help them to extend the buying cycle. Carpooling and ride sharing programs to be minimized for the next few months.
• Once the pandemic is over, organizations can take measures to improve the total cost of mobility by adopting ride sharing, carpooling, mobility budgets and other alternate mobility models to reduce the overall fleet budget
• It is an opportune time for fleet owners/operators to begin or continue the direct negotiations with OEMs. Purchase agreements can be inked only in regions where production has resumed with pricing/rebates and availability of new models varying by region.
• Alternate mobility services like ride hailing, carpooling are suspended. Ride hailing companies are operating only to cater to essential services. A decrease in adoption of shared mobility is expected for a short term.
• Organizations to have a close watch on the TCO of the vehicles and utilization rates. Essential service providers and cash rich companies are preparing plans to benefit from the current market situation

The research methodology adopted for the report included:

• Experts with twenty years of domain experience
• Interaction with buyers
• Inputs from supply chain partners

Similar to the 2008 global financial crisis, the fleet industry is at the beginning of a cycle, which can extend for a few years. Discounts can be expected in the form of penalties for delivery delays in the 2020 program year and normalizing price increases for the 2021 program year. Higher discounts can be expected for large fleet orders, and discounts can go as high as 20 percent for direct fleet purchases. Delayed payments from the two critical segments – SMEs and B2C can have significant financial burden on the leasing companies.

The report also includes:

Market Analysis:

• Fleet Management 
• Vehicle Sales
• Major Risk Factors
• Industry Risk Drivers
• Risk Probability

Impact Analysis:

• Fleet Management Industry
• Car Manufacturers
• Leasing Companies 
• Alternate Mobility

Market Outlook:

• Short-Term Impact
• Long-Term Impact
• Measures Taken By Companies
• Supplier Outlook

About Beroe Inc.:

Beroe is the world’s leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:

Debobrata Hembram
debobrata.hembram@beroe-inc.com

Logo: https://mma.prnewswire.com/media/777512/Beroe_Logo.jpg

– The top ten car manufacturers are facing a collective fine of €114.6 billion in 2021 unless they drastically reduce their carbon footprint, research shows.

– Daimler AG is the furthest away from meeting EU 2021 carbon targets, resulting in potential annual fines of €13.3 billion based on fleet emissions.

– Groupe PSA produced the most polluting best-selling models last year, which would cost them €1.263 billion to offset alone.

– No car manufacturer is currently on track to meet EU targets, as the transport sector still accounts for a staggering 24% of annual global carbon emissions.

LONDON, June 30, 2020 /PRNewswire/ — None of the top ten car manufacturers are close to meeting EU carbon targets and could face annual fines of €11.4 billion each as a result, new research shows.

The Auto Emissions Report found that Daimler AG is the carmaker that’s furthest away from achieving the 2021 EU target of 95CO2g/km average fleet emissions, while Toyota Industries is the closest to lowering its carbon footprint – but still faces significant fines.

Automakers need to substantially reduce their annual carbon footprint in order to meet EU emissions standards, or else face fines of €95 per CO2g/km that exceeds the target, multiplied by unit sales. Based on the fleet emissions and unit sales of top manufacturers over the last year, this equates to a staggering €11,462,337,802 on average in penalties each.

As well as paying fines for exceeding EU targets, auto manufacturers would also have to offset the emissions of their annual sales. In 2019, top ten car makers would have had to pay a collective €424 billion – or an average of 39.5% of their annual revenue each.

Manufacturers and distance from EU target

An analysis of the best-selling models of each brand reveals that Group PSA produced the most polluting cars on average last year, which would cost €1.3 billion to offset. Based on EU sales, the most polluting model sold last year was the Renault Clio.

Dissecting the running costs of manufacturers’ flagship models shows that the Mercedes-AMG GT was the most polluting model on the market last year, while the Peugeot 508 was the most environmentally friendly. Despite this, the 508’s carbon footprint is still equivalent to consuming 12,208 litres of gas, or 10,659 litres of diesel.

The transport industry is one of the largest contributors to the global carbon footprint, accounting for an estimated 24% of the world’s greenhouse gas emissions last year.  Although many manufacturers are electrifying their fleet to reduce emissions, the car making sector is facing more pressure than ever to tackle their contribution to climate change.

To see the results of the Auto Emissions Report, visit: https://www.netbet.co.uk/auto-emission-report

Data gathered from a range of sources, including auto manufacturers’ annual reports, EUROPA, transportenvironment.org and Carbon Engineering. Tonnes are metric.

Please contact:
Claudia Georgevici
E-mail: pr@netbet.com