Flexible hire to prove vital as semiconductor crisis hits fleet deliveries
Flexible rental will be a vital support for fleets as a global shortage of semiconductors is disrupting supply chains and extending delivery times of new vehicles
Vehicle hire is set to play a key role in supporting fleets as a global shortage of semiconductors affects car and van production and disrupts vehicle supplies.
The technology, commonly referred to as microchips, sits at the heart of every digital device, with staggering quantities produced each year. Estimates suggest 1,000 billion semiconductors were shipped annually before the pandemic.
As demand slumped during the Coronavirus outbreak, manufacturers cancelled orders, but the rapid recovery has left them scrambling for supply as vehicle stocks run low.
Some manufacturers are announcing plant shutdowns because they cannot source the essential components that control an array of critical in-vehicle systems, from engines to brakes and lights.
The Association of Fleet Professionals has called on manufacturers to provide updated and accurate information on lead times, as reports reveal some factory orders could take 12 months to fulfil.
Lisa Spong, Reflex Vehicle Hire Sales Director, said:
“We are working closely with fleet operators to help them manage any gaps in supply on a flexible basis as the industry manages this emerging problem.
Vehicle hire plays a vital role in helping fleet operators to respond to unexpected challenges including vehicle availability for either cars or vans.”
The Reflex Vehicle Hire fleet reached a record size during 2020 as demand for flexible rental increased during the pandemic, with businesses looking to avoid the risks associated with long-term contracts, such as early termination charges.
Reflex Vehicle Hire has pioneered a flexible rental programme that allows operators to secure vehicles for as long as they need them, then hand them back at short notice without charge.
To discuss your vehicle requirements, contact a member of the Reflex Vehicle Hire team.
For details on the wealth of vehicles available on flexible terms from Reflex Vehicle Hire, review our Vehicle Selection page.