
United States of America
The United States of America (USA), commonly known as the United States (U.S. or US), is a country primarily located in North America. It consists of 50 states, a federal district, and five major self-governing territories.
The U.S. fleet market currently operates in a low-interest and low-inflation environment, and meeting the country's safety and fuel economy standards will require substantial investment by OEMs. These higher costs are passed on to end users, which will stimulate cost savings innovations and funding alternatives. Moreover, technology is seen transforming fleet management and the trend towards integrating business processes are seen accelerating.
Open-end leases are more commonly used in the country. Although it gives the lessee more flexible terms, it does put more pressure on them when it comes to taking on depreciation risk.
As such, cost containment remains the #1 priority for fleet managers everywhere and one of the most common strategies is to extend the vehicle replacement cycle. Downsizing will remain a fleet trend in the US, in class size, engine displacement and fleet size. Low fuel prices could see volatility shortly as governments are under pressure to increase fuel taxes.
Chapter 1: Economic and business environment
Demographics | 2022 population: approximately 335 million |
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Capital | Washington DC |
Major cities | 2021 population |
Languages | Tha main language in the U.S. is English with 229 million speakers Others include |
GDP | 2022 (Nominal) |
Unemployment rate | 3.5% (December 2022) |
Main industries | Energy, manufacturing, transportation, health care, agriculture |
Currency | US dollar |
Interest rate | 4.35% (December 2022) |
Fleet Maturity Index (scaling) | Recovering from the COVID-19 pandemic era, overall production rose 4% in 2021 to 9.17 million units, being 1.6mn passenger cars and 7.6 commercial vehicles. (source: OICA) |
Political key info | The United States is a federal republic in which the president, Congress, and federal courts share powers reserved to the national government according to its Constitution. The executive branch is headed by the President and is formally independent of both the legislature and the judiciary. Legislative power is vested in the two chambers of Congress, the Senate and the House of Representatives. The judicial branch (or judiciary), composed of the Supreme Court and lower federal courts, exercises judicial power. The federal government's structure is codified in the Constitution. Two political parties, the Democratic Party and the Republican Party, have dominated American politics since the American Civil War, although smaller parties exist such as the Libertarian Party, the Green Party, and the Constitution Party. |
Inflation | 6.5% (December 2022) |
Chapter 2 : Automotive market, segments & sales
Total Car park | 2022
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New vehicle registrations (Cars, LCV, Trucks) | 2022 source: OICA
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Top 5 brands (total market) | 2022 sales 1. General Motors (2.26mn, 16.2% market share) up 2.5% y-o-y source: MarkLines Data Center Popular luxury brand in the US is Mercedes-Benz, and for electric vehicles, it is Tesla. |
Model preference top 5 (total market) | 2022 sales source: MarkLines Data Center |
Dealer network (including fleet dealer network) | Approximately 16,500 nationwide |
Used car market/renewal cycle | The used car market in the U.S. is large, seeing approximately 40 million units sold per year |
Chapter 3: Company car market
Total Fleet Park (company cars)/Fleet penetration in total fleet sales | As of January 1, 2021 Automobile fleet: 3.4 million source: Bureau of Transportation Statistics The breakdown for fleet type is corporate (38%), government (36%), rentals (26%) |
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Evolution fleet sales (last 5 years) | In 2021, light & heavy commercial vehicles sales fell 5.7% to 11.4 million units from 12.1mn (source: OICA) Fleet sales represent approximatly 15% of the total. |
Top 5 fleet brands (fleet market) | Pickups are of high demand, mostly from Ford, Chevrolet, and Ram. |
Fleet Model preference top 5 (fleet market) | 1. Ford F-150 |
Chapter 4: Taxation & legislation
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Chapter 5: Car policies
The main ingredients of today's Car Policy
- Fuel Efficiency and Cost Control meastures are key, but also Health and Safety are of concern for fleet managers
- This is also true for Environmental and Sustainability issues but too a lesser extent than what is usually seen in Europe
- Return Vehicle Condition stipulations are also in policies, of which drivers are informed and advised on what to do and what not to do when using the asset.
Like many other countries, keep in mind that the lack in microchips, parts, and components is affecting policy creation in the U.S. (delivery schedules, contract length and renewals). Although it depends on various factors, supply should come to par with demand in early 2022.