February 21, 2022

The automotive industry are continuing to face challenges post Covid-19

Since the pandemic major carmakers are experiencing slow production of vehicles and this has resulted in shortages throughout the automotive sector.

The challenge comes from the lack of new cars ordered during the COVID era and a shortage of semiconductors. The supply shortage has put a lot of pressure on fleet management businesses like CLM, meaning that new vehicle availability is seriously restricted and as a result of the delay in new orders, we have seen an increased demand on companies choosing rental cars as a short-term solution before they receive their new vehicle.

The pressure to support our customer’s fleet is continuing into 2022 as there is low supply for our rental market. Typically, at a time when the demand for short term flexible rental vehicles increases. Many home delivery companies are holding onto larger volumes of fleet than they would normally and other sectors are also doing the same, particularly on vans and HGV’s.

It is also worth mentioning accident damage and labour shortages. We are in the winter months, with some harsher weather across the country, which can lead to weather related mechanical issues and accident damage in short-term replacement vehicles. Covid has impacted the shortages across the whole market and on all vehicle types due to labour shortages.

However, we want to reassure you that CLM can still support your rental vehicle needs. Through our network, we do have access to vehicles, albeit the choice is minimal.

Pre-pandemic there was a great range of makes, models, colours and specifications, and now we have moved to a more condensed list. The market is expected to change and recover with a wider choice of vehicles available, but for now we want to keep you updated.

We are confident our team are supporting you, however if you have any questions about how this may impact your fleet, then please do contact us.

For now we recommend:

  • Booking in advance where possible. The more notice we have, the better chance we can fulfil your booking.
  • Continue to use our rental booking system. This enables us to maximise our resources in finding urgent vehicles.
  • If you are thinking of hiring a vehicle, and know you are likely to need it again shortly, we recommend keeping hold of your existing hire.

We also want to take this opportunity to thank you for your patience during this challenging time.