As tariffs reshape the automotive landscape and dealer inventory remains tight, fleet managers face unprecedented challenges in vehicle procurement. Let’s examine the latest OEM updates and market insights to uncover critical supply chain optimization strategies for Q4 2025 and beyond, enabling you to stay ahead of market disruptions.
A perfect storm for fleet procurement
The automotive supply chain is undergoing a fundamental shift. Inventory availability levels have dropped to an average of 88 days, while tariffs and cost increases due to new labor contracts threaten to further increase vehicle costs across segments. For fleet managers, this convergence of tight supply and rising costs demands a strategic response. Organizations that move from reactive procurement to proactive supply chain optimization will thrive in this environment.
Tariff impact: understanding the new cost structure
Recent tariff developments are reshaping fleet economics:
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Light-duty vehicles: According to Cox Automotive, price increases are lower than initially feared—4–8% versus the earlier forecast of 10–20%. However, the impact varies:
* **Import vehicles:** +$5,500
* **Canadian/Mexican imports:** +$4,900
* **U.S.-assembled vehicles:** +$1,000
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Medium and heavy-duty trucks: Section 232 tariffs on imported Class 4-8 trucks impose a 25% increase, pushing MSRP from $170,000 to $200,000, and after a 12% federal excise tax, total cost reaches $224,000—a staggering $54,000 per unit. Tariffs also apply to truck parts, compounding maintenance costs.
Strategic implication: Prioritize U.S.-assembled vehicles where specifications allow and accelerate heavy-duty truck orders to avoid steep cost hikes.
Dealer sentiment and inventory constraints
Dealer sentiment declined in Q3 due to economic uncertainty, political climate, and tariff concerns. While this may seem like abstract data, it has concrete implications for fleet managers. When dealer sentiment drops, dealers become more conservative with inventory commitments, potentially creating fulfillment challenges for large fleet orders.
Lower confidence translates into conservative inventory commitments, creating fulfillment challenges for large fleet orders. Toyota continues to hold the fewest days of supply, while RAM maintains the highest. These insights can inform negotiating leverage.
Action: Strengthen OEM relationships and submit orders earlier in the model year cycle for low-inventory brands like Toyota, Honda, and Subaru.
EV transition: Hybrid growth takes the lead
The fastest-growing EV segment isn’t battery electric or plug-in hybrid—it’s Hybrid Electric Vehicles (HEVs). HEVs offer a practical entry point for fleets seeking sustainability without infrastructure challenges. OEMs are adjusting production priorities accordingly, making hybrids a strategic choice for 2026 planning.
OEM order bank highlights
- Ford: MY2026 order banks open for F-150, Super-Duty, Transit, Ranger, Bronco, and Mustang Mach-E. Scheduling extends to June 2026. Remember to secure custom pricing arrangements (CPAs) from the Ford Pro team
- GM: MY2026 Chevrolet Express and GMC Savana order banks have opened and production has started. Submit orders early to secure slots. MY2026 Silverado & Sierra 1500 order banks will be closing on a staggered basis on the type of cab involved with double cab closing mid-January 2026, regular cab closing mid-March 2026, and crew cab to be announced. Contact a member of the GM Envolve team to obtain your MY2026 competitive assistance program (CAP) agreement.
- Stellantis: MY2026 order banks open for RAM1500–3500 pick-ups, ProMaster, and Durango. Before placing Stellantis orders, call for a volume incentive program (VIP). Document these agreements in your procurement files.
- Nissan: MY2026 order banks open for Altima, Frontier, Rogue, Sentra, and more. Regional emissions restrictions affect MY2026 Pathfinder deliveries in CA, NY, MA, OR, VT, and WA for dealer inventories, while MY2026 Pathfinder order bank has closed. New orders for MY2026 Murano must be AWD-only; Ariya discontinued for MY2026. Contact a member of the Nissan Fleet team for a copy of your MY2026 incentive letter.
- Toyota: Several models have sold out: Camry, Corolla (gas), Grand Highlander (gas & hybrid), Highlander (gas & hybrid), RAV4 (hybrid), Sequoia, and Sienna. Other models are nearing closure of their order banks as well.
Five actionable takeaways for fleet managers
- Accelerate order timelines by 60–90 days
- Staying ahead of the acquisition process is critical.
- Prioritize U.S.-assembled vehicles
- Tariff differential ($1,000 vs. $5,500) adds up across multi-vehicle cycles.
- Lock in medium- and heavy-duty truck orders immediately
- Avoid the $54,000 per-unit increase on Mexican-built Class 8 trucks.
- Leverage manufacturer incentive programs proactively
- CAP letters, CPA letters, VIP incentives, and other volume commitments can yield significant savings.
- Build alternative specifications for constrained models
- Pre-approve backup options to prevent costly delays.
From procurement to strategic supply chain management
The current automotive market rewards strategic thinking over tactical purchasing. Fleet managers who anticipate constraints, understand tariff implications, and build strong OEM relationships will navigate acquisition challenges more successfully than those who maintain traditional procurement approaches.
For help shaping and implementing the best acquisition strategies given current conditions, contact Mike Albert today.
