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\u00a0<\/strong>Fleet\u2019s largest independent vehicle re-seller seeing unprecedented shortages \u2013 and paying highest used vehicle prices \u2013 in generations<\/em><\/strong><\/p>\n (FOR RELEASE – MAY 18, 2021)<\/strong> – The fleet industry\u2019s largest independent vehicle remarketer \u2013 FLD Inc – said today that it was seeing the global chip shortage beginning to have negative consequences for the fleet industry, which \u2013 like most sectors \u2013 is trying to recover from the devastating effects of the global pandemic.<\/p>\n According to an expert for the company \u2013 a leading remarketer for more than 40 years – the pain \u201ccould just be getting started,\u201d for fleets, which currently have over 20 million vehicles plying America\u2019s roads.<\/p>\n The problem according to Bill Bishop, Senior Vice President of Sales and Marketing for FLD Inc is an alarming shortage of new vehicles, and a reluctance to part with existing \u2013 often aged \u2013 units. That\u2019s not surprising given that there have been 1.3 million less vehicles manufactured in the US during the first 3 months of 2021 alone according to industry consultants IHS Markit.<\/p>\n For Bishop, a 30-plus year veteran of the fleet industry, the problem staring fleet in the face comes down to a simple law of supply and demand. The average vehicle has upwards of 3,000 semi-conductor chips running various systems. If manufacturers can\u2019t find enough chips, that means they have to limit production. When that happens, new vehicles become scarce, leaving fleets scrambling to keep up with exploding demand, and finding new ways to get more out of the vehicles they already have.<\/p>\n Thus far, the shock waves from the chip shortage have been unprecedented. From vehicle production lines shuttered at manufacturers from Kansas City to Beijing to some auto manufacturers being forced to horde chips. And several even halting production on cheaper offerings. Even scarier, no one\u2019s quite sure when the chip shortage will end \u2013 or if it even will. Especially considering that two of the world\u2019s three biggest chip makers \u2013 Taiwan Semi-Conductor Manufacturing and Samsung – have indicated that they are sold out of chips for the rest of 2021, and most likely for all of 2022. That\u2019s not good for the fleet, which is experiencing explosive demand for basically every vehicle from final mile delivery to semis to work trucks and executive cars.<\/p>\n Complicating matters even more, there simply aren\u2019t enough chip-making machines to keep up with worldwide demand and no easy way to build more of them. Even worse for fleets? The vehicle industry accounts for a paltry 3% of the global chip market, meaning more lucrative industries like handheld devices, computers, and electronics get first priority from chip manufacturers anxious to maximize profits.<\/p>\n The chip shortage has been especially devastating to fleets given that most are still either reeling from the effects of the pandemic or trying to figure out how to operate in a post-pandemic world. But without new inventory, there\u2019s no way to ramp up a business or replace aging vehicles, most of which are usually retired from service \u2013 and sold through remarketers \u2013 every 4 to 8 years.<\/p>\n According to FLD, while its access to used vehicles is the lowest it\u2019s been in years, it\u2019s been paying record prices to vehicle sellers as the market heats up. That presents a double-edged sword for the company, which assumes all of a seller\u2019s risk by paying them up-front for used vehicles instead of after remarketing them.<\/p>\n The resulting dynamics are something Bishop says the remarketing space has never experienced, nor probably ever will again.<\/p>\n \u201cAt this point, we\u2019re advising our customers to be mindful, but to also realize this won\u2019t last forever, and that if they need the operating capital or to lighten their load, there\u2019s never been a better time to sell used vehicles and equipment,\u201d Bishop said.<\/p>\n FLD Inc is America\u2019s largest independent vehicle remarketer and has been a pioneer \u2013 and leader \u2013 in the fleet industry for more than 40 years. It is the only remarketer that assumes all of a fleet vehicle seller\u2019s risk by giving them a quote in hours and paying them upfront for the full price they agree to in less than a day. No hassles, no hurdles \u2013 just one simple, seamless transaction that improves total cost of ownership, stops lease payments and leaves sellers free to move on to more important things faster. \u00a0For more information, please visit our website at <\/em>www.fldinc.com<\/em><\/a>, or call for a no-obligation quote at 1 (800) 754-1522 today.<\/em>\u00a0<\/em><\/p>\n