From weather emergencies to supply chain disruptions and more, Element Fleet Management has you covered. We actively monitor emergencies and service interruptions so our experts can help keep your fleet ahead of the pack.
On September 25, the Canadian Union of Postal Workers (CUPW) initiated a nationwide strike, resulting in the suspension of all Canada Post mail and parcel services across the country. To keep your operations running smoothly, we have implemented alternate measures:
As news on tariffs continues to evolve at a rapid pace, we will update this page with insights and information important to our clients and the fleet and mobility industry.
Fleet drivers should use our Supplier Locator to find fuel stations and repair shops in their area. In the event of natural disasters and other unforeseen circumstances, fuel stations and maintenance shops may close or adjust their hours. Check the last updated information under details. Those with updates over 24 hours old are likely not viable options.
Published February 11, 2025
The steel and aluminum tariffs announced by President Trump, which are effective March 4, are expected to have additional repercussions, particularly if they end up stacked atop the Canadian and Mexican tariffs which are currently set to take effect on March 1.
The automotive and fleet management industries may face the following impacts:
Increased Costs and Vehicle Prices:
While much of the steel that auto manufacturers use is produced in the United States, they also depend on specialized alloys that are only available from other international producers. A 25% tariff on steel and aluminum imports will raise material costs, leading to higher vehicle production expenses. Based on metal weight and cost per ton, prices may increase upwards of $500 USD on vehicles including trucks, truck bodies, and aftermarket equipment. For cars manufactured in Canada and Mexico, there would be no impact to pricing.
Production Disruptions:
Tariffs may disrupt supply chains heavily reliant on North American manufacturing, potentially reducing production by up to 30% for certain vehicles. In addition, delays in raw material availability could extend vehicle delivery timelines.
Global Stock Changes:
The announcement has already triggered a decline in global auto stocks, reflecting investor concerns about trade conflicts and supply chain disruptions; with that, there has also been an increase in the stocks of U.S. metals processors.
Vehicle orders and pricing:
Given OEMs review their pricing continuously we may see price increases to MSRP. In addition, in response to the tariffs, vendors may shorten quote expiration periods due to fluctuating material costs.
Keeping you informed:
Given the evolving landscape, we will continue to monitor the impacts of tariffs as they are fluid. We continue to stay informed on these changes, and how they impact you, your organizations, and your business. We will ensure to provide updates frequently, along with our recommendations. Please continue to visit our Operations and Alert Response Center on our website, for the most up-to-date information as the situation continues to evolve.
Published February 3, 2025
The recently announced tariffs, which are currently paused for 30 days, bring with them an increasingly complex landscape with the potential for increased costs, supply chain disruptions, price volatility, and additional uncertainty. As your strategic fleet management partners, we are closely monitoring this rapidly evolving situation and are committed to keeping you updated.
Overview of key risks
Although Mexico and the U.S. have agreed to put tariffs on hold for one-month, similar implications would apply to goods from Mexico, should a tariff be enacted.
Increased Costs
The proposed 25% tariffs on goods from Canada could significantly raise costs for fleet operators, especially for vehicles and parts imported from these countries.
Once in effect, the tariffs would have broad impact on acquisition costs for new vehicles; of the U.S. market’s 50 best-selling models, which account for approximately 60% of the market volume, half will be directly impacted.
Tariffs will raise the cost of vehicles imported from Canada by up to 25%, with price increases of $5,800USD or more for a $25,000 vehicle. This will affect fleets relying on affordable light-duty trucks and SUVs like the Chevy Silverado, Ford Maverick, and Toyota RAV4.
These metrics do not account for the impact on associated maintenance fees for auto parts that currently move freely across the Canada, U.S. and Mexico borders today
Supply Chain Disruptions
Tariffs can disrupt established supply chains, leading to delays and increased shipping costs. Fleet managers may face challenges in sourcing vehicles, and higher prices for automotive parts sourced from Canada, which are integral to U.S. vehicle production which could affect vehicle availability and operational efficiency.
Fuel Price Volatility
With Canada being a major supplier of crude oil to the U.S., tariffs could lead to increased fuel prices, impacting overall operational costs for fleets that rely heavily on fuel. Analysts predict potential hikes in gasoline prices by 40 to 70 cents per gallon due to these tariffs.
Resale Value Fluctuations
As new vehicle prices rise due to tariffs, resale value of used vehicles may increase if there is a drop in new vehicle purchases, tightening the supply of used vehicles hitting the secondary market and offering some potential upside.
Retaliatory Tariffs
Canada has announced retaliatory measures, potentially increasing costs further for U.S.-based fleets operating internationally.
Economic Uncertainty
The broader economic implications of tariffs can lead to uncertainty in market conditions, affecting demand for goods and services. This uncertainty can complicate fleet planning and investment decisions.
As your strategic partners and as a global leader in fleet management, Element is committed to supporting you as this situation develops, leveraging our global reach and deep industry connections.
Domestic sourcing in the U.S.: Our team will aim to prioritize U.S.-based suppliers to avoid tariff-related costs and is actively mapping vehicle manufacturing locations and component input origins to minimize impact where possible.
In Canada: Our team will follow similar approach as above, prioritizing Canada-based suppliers to avoid tariff-related costs and is actively mapping vehicle manufacturing locations and component input origins to minimize impact where possible.
More to come
We are committed to providing you with relevant, up-to-date information to help you in navigating your fleet management needs during this time. Please continue to check back here for the most up-to-date information as the situation continues to evolve.
We are closely monitoring the situation and will continue adapting as it evolves to minimize disruption and ensure the best outcomes for you. Business continuity remains our priority, and our teams are here to support you every step of the way.
For further information or questions, please contact your Element representative.
All Canadian fuel card shipments have been shifted to 2nd-day air courier to ensure timely and secure delivery.
We continuously monitor vehicle supply chain impacts and will update our clients with critical information as it becomes available.
For the most recent, direct-from-OEM information, visit their websites:
GM
Ford
Stellantis
Toyota
Nissan
Kia
BMW
Subaru
Hyundai
Tesla
Delivered as instructed. If documentation is not received before expiry, electronic copies will be available upon request.
Distributed according to your direction.
Non-Program Clients If you’re unable to return transponders due to the strike, please notify 407ETR in advance to ensure proper tracking and avoid unnecessary charges.
Program Clients
If the strike continues, Verra Mobility will proactively provide 407ETR with scheduled return lists to help minimize potential charges.
All Clients
New transponder shipments remain unaffected—FedEx continues to deliver directly to drivers without delay.
Temporary tags for new vehicles remain valid for 45 days from issuance.
Hard plates, normally delivered within 2–3 weeks via Canada Post, may be delayed due to the strike.
The SAAQ has requested police services to show leniency regarding expired temporary tags during this disruption; no fines should be issued if delays are due to the strike.
Recommended Actions:
Ensure drivers keep proof of registration and the tag issuance date.
Monitor SAAQclic for updates or digital confirmations.
Advise caution when driving outside Quebec, as leniency may not apply in other provinces.
Shops are paid through PNC Bank. The bank is exploring alternative payment methods for Canadian Collision shops; currently, all CEI shops continue to be paid by check using the legacy system. Updates will follow once a new method is put in place.
In line with our standard alternate delivery process, all courier expenses will be charged directly to the client account.