Allocation Approvals Matter in MY23

Written By: Steven Curt, VP Operations

The 2022 model year posed a challenge to not only vehicle manufacturers (OEMs), but fleet and retail customers, too. Many fleet orders were delayed or cancelled entirely, and some vehicles were sold to customers missing features, such as heated seats, backup sensors, and more! This led to pushback across the industry, with demands that OEMs find a solution for the upcoming model year.

While only marginal improvements are expected in the supply chain for the 2023 model year, as order banks open and production begins, more OEMs are moving to an “allocation approval” system for high-demand fleet models. This means that you’ll need to speak with your fleet account manager at the OEM to get their approval and vehicle order quantity before an order can be placed with your fleet management partner.

Getting orders placed quickly after the banks open has been the best way for Merchants clients to secure vehicles in MY22. This year, this additional step has the goal of preventing over-ordering, eliminating surprises, and allowing fleets to get a better feel for how many vehicles they’ll receive from the factory. We recommend getting your own internal approvals for fleet budgets done quickly, so that you can get these OEM allocation approvals as soon as possible – improving your chance at an allocation.

As of the publication of this blog post, Ford, General Motors, and Toyota are requiring allocation approval for select models. Merchants Fleet keeps the latest OEM build out information in a centralized location for clients, click here to see the list.

Unsure about how to get the allocation approval process started with an OEM? We’ve listed the procedures below for each OEM currently requiring allocation approvals to help you place orders quickly and efficiently. 

 

Chevrolet
GM has already closed order banks for many MY23 Chevrolet models. Currently, the 2023 Chevrolet Colorado, Equinox, Express (Cargo/Cutaway/Passenger), and Silverado 2500/3500 Crew Cab require allocation approval.

  1. Contact your General Motors National Fleet Account Manager to obtain approval before submitting your order.
  2. After receiving your approved order quantity, place your order for the exact amount allocated with your CDM at Merchants Fleet.
  3. Any orders placed without approval will be automatically cancelled without notice.
  4. Merchants cannot obtain allocation approval on behalf of clients as approvals are based on FAN Code within the General Motors system.

Ford
As of June 1, 2022, the 2023 Ford Transit is the only fleet model that requires allocation approval (excludes government FIN orders).

  1. Contact your Ford National Account Manager to obtain approval before submitting your order.
  2. After receiving your approved order quantity, place your order for the exact amount allocated with your CDM at Merchants Fleet.
  3. If any units have been ordered beyond your approved amount, you’ll receive a “Material Hold-Quarterly Order Bank Closed” message and the units will be deleted at the end of the quarter from the Ford system.

 

GMC
GM has already closed order banks for many MY23 GMC models. Currently, the 2023 GMC Canyon, Savana (Cargo/Cutaway/Passenger), Sierra 2500/3500 Crew Cab, and Terrain require allocation approval.

  1. Contact your General Motors National Fleet Account Manager to obtain approval before submitting your order.
  2. After receiving your approved order quantity, place your order for the exact amount allocated with your CDM at Merchants Fleet.
  3. Any orders placed without approval will be automatically cancelled without notice.
  4. Merchants cannot obtain allocation approval on behalf of clients as approvals are based on FAN Code within the General Motors system.

Toyota
Many 2023 Toyota models require allocation approval for fleet and government orders. This includes the 2023 bZ4X, Camry, Camry HEV, GR Supra, GR86, and Sequoia (government only).

  1. Contact your Toyota National Account Manager to obtain approval before submitting your order.
  2. After receiving your approved order quantity, place your order for the exact amount allocated with your CDM at Merchants Fleet.
  3. If any units have been ordered beyond your approved amount, the units will be deleted from the system without notice.

 

Volkswagen
Volkswagen is continuing their “pre-approval” requirement for MY23 fleet orders.

  1. Contact your VW Regional Fleet Sales Manager to obtain approval before submitting your order.
  2. After receiving your approved order quantity, place your order for the exact amount allocated with your CDM at Merchants Fleet.
  3. You will need to have a signed MY23 VPP on file plus a valid FIN code.

 

If you’d like to learn more about fleet vehicle availability for specific makes and models, please contact us or call 866.653.2737 and one of our experts will assist you. 
 

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