Rising OEM Vehicle Costs: What Fleet Leaders Should Be Rethinking Now

By Tim Cengel, Director, Procurement and Electrification

After hearing directly from OEM leaders at a recent panel at the NAFA I&E in Ohio, one thing is clear: cost pressure is building. As a result, fleets that respond early will be better positioned to manage these challenges.

After attending the OEM panel at NAFA this year, leaders from GM Fleet, Ford Pro, Stellantis, and Nissan took the stage to share a strategic perspective on the trends and considerations influencing fleet operations in 2026 and beyond. A few themes stood out. While the industry has become more resilient through years of disruption, the next phase isn’t about reacting; it’s about preparing.

Geopolitical uncertainty, ongoing tariff pressures, and evolving powertrain strategies were top of mind for OEMs, who expressed alignment on a core issue: costs are moving upward, so fleets need to plan for these new realities.

From a procurement perspective, that reinforces something we’re actively discussing with customers: now is the time to take a closer look at your fleet strategy and identify where adjustments can create meaningful cost control.

How Ongoing Supply Chain Disruptions Are Impacting Fleet Costs

Over the past several years, fleets have navigated everything from supply chain challenges to inventory shortages. What we heard at NAFA is that this environment hasn’t fundamentally changed; it’s just evolving.

Global conflict, fuel volatility, and tariffs are all contributing to a new wave of pressure, particularly tied to:

• Transportation and logistics costs
• Material inputs like oil, plastic, steel and aluminum
• Overall vehicle production expenses

OEMs respond well to disruption. For fleets, though, uncertainty must factor into planning assumptions, not be brushed off as temporary.

Costs Are Rising, So How Can Fleet Professionals Adapt?

One of the more candid moments in the discussion centered around vehicle pricing. While no one could predict exact increases, the consensus was clear: vehicle costs will continue to climb.

This shifting landscape puts more pressure on fleets to control what they can. From our perspective, the greatest immediate opportunities come from making small adjustments in vehicle selection and usage, which can significantly affect overall spend.

Some of the areas fleets should be evaluating include:

• Right-sizing vehicles
  Many fleets are operating vehicles with more capacity than they actually need. Moving from a full-size vehicle to a mid-size, or even a compact option in certain applications, can reduce both acquisition and operating costs.
• Fuel efficiency improvements
  With fuel costs expected to remain volatile, even incremental MPG gains across a fleet can add up quickly.
• Revisiting specs and upfits
  Are all features necessary for the job being performed? Simplifying specs where possible can help offset rising base vehicle costs.

This is not about reducing capability—it’s about closely aligning vehicles with real-world use to drive efficiency and savings.

Powertrain Strategy: Flexibility Matters More Than Ever

Electrification was a major topic at the panel. However, rather than pushing for a rapid transition, OEMs now emphasize offering a range of options, reflecting a more flexible approach.

What we heard consistently:

• EVs remain a long-term direction.
• Adoption timelines will vary by fleet and application.
• Hybrids and extended-range solutions are gaining momentum.
• ICE and diesel are still critical for many use cases

Vehicle Availability Is Improving, But Fleet Planning Still Matters

There was encouraging news regarding supply chain stability at the panel. Order-to-delivery timelines have improved, and inventory is gradually becoming more predictable—which is a positive trend for planning ahead.

However, predictability is what matters most.

OEMs are investing heavily in:

• U.S.-based production
• Supply chain resilience
• Better visibility and tracking tools

For fleets, this creates an opportunity to plan more effectively, but it doesn’t eliminate the need for early decision-making. Ordering cycles, spec decisions, and upfit coordination still require lead time to avoid delays.

Operational Efficiency Is Now a Competitive Advantage

Another key takeaway from the panel was the growing importance of data and telematics. Today, vehicles are generating more data than ever, and fleets that use that data effectively can offset rising costs.

Areas where we’re seeing real impact:

• Monitoring driver behavior (idling, braking, acceleration)
• Optimizing routing for fuel efficiency
• Shifting from reactive to preventative maintenance

Though these aren’t new concepts, they are becoming increasingly critical as cost pressures mount.

A Constraint Fleets Can’t Ignore: Technician Shortages

While much of the conversation focused on vehicles, one operational challenge stood out: the shortage of qualified technicians.

This is a long-term issue, and it’s already affecting:

• Maintenance turnaround times
• Vehicle downtime
• Overall fleet productivity

Because this isn’t something fleets can directly control, it makes preventative strategies even more important:

• Staying ahead on maintenance schedules
• Using data to identify issues early
• Minimizing unnecessary wear and tear through better driving practices

Why Now Is the Time to Reevaluate Your Fleet Strategy

Walking away from the OEM panel, the message was consistent: the environment is getting more complex, and costs are trending upward.

For fleets, the most effective response isn’t waiting; it’s reassessing.

That means taking a closer look at:

• Whether your current vehicle mix still aligns with your needs
• Where you may be able to downsize without sacrificing performance
• How fuel efficiency and powertrain choices are impacting your total cost
• What operational changes could improve overall efficiency?

Fleets that act now will be better positioned to manage future cost increases.

And just as importantly, they won’t be navigating those decisions alone. The insights shared at NAFA reinforced the value of collaboration across OEMs, fleet partners, and internal teams to make smarter, more informed choices.

If you are looking for a partner that can help you navigate rising vehicle costs, contact Union Leasing.