Commentary: Why So Many Vans?

Vans have taken over your city. Your neighborhood. Dropping off your packages. Racing block to block to get the job done.

These ubiquitous vans have multiplied exponentially. All of the sudden, there is expanded business for the full-sized cargo van, as Amazon have taken control of their deliveries. The uplift fromn this has been the employing of third-party van lessors to augment extra business Amazon and FedEx have gained. UPS even added vans to their fleet, as well. 

You would think that Ford, Stellantis, Mercedes-Benz, General Motors, and Rivian are experiencing a growth in their commercial vehicle business in North America because of the delivery boom. There has also been a need to renew fleets for transportation companies offering everything from airport shuttles to larger capacity luxury transportation. 

The Ford Transit, along with some remaining E-Series models, remain at the top of its class. The Transit saw a 30-percent boost in annual sales for 2023, compared the year previous. The E-Series Cutaway Vans were no slouch at a 34-percent sales increase in 2023. The third quarter of 2024 are still showing growth for the Transit with over 114,000 sold this year so far – a 16.6-percent increase from 2023.

The Ram ProMaster van also saw a similar jump in 2023, with a 34-percent increase in sales from the year previous. However, sales are slowing down this year so far with a decrease of 32-percent from last year ta the third-quarter mark.

Mercedes-Benz also saw a sales increase in their van business, driven mostly by the Sprinter. An eight-percent annual year-to-date rise was seen for 2023. 

General Motors offers the oldest vans in the business with the Chevrolet Express and GMC Savana. They are not designed in the fashion of the European-based vans from Ford, Stellantis and Mercedes-Benz, which has shut them out of the delivery business.  So far, their sales have been decreasing for 2024. However, Brightdrop business has been climbing, but they are selling in small numbers. Perhaps when the Chevrolet bowtie will appear on these electric vans, we might see more of them on the road. 

We should also mention Rivian, produces the battery-electric Commercial Van. They also supply Amazon with their Custom EDV vans. No sales figures have been found directly from Rivian, but they represent a small number of commercial vehicles on the road. Ford, Ram, Mercedes-Benz also sell battery-electric powered vans in competition with Rivian and Brightdrop/Chevrolet. 

If you aggregate all of this information, then you can conclude that 2023 was a huge year for the cargo van. Therefore, it is not an illusion that there are many vans on the road delivering your purchases from Amazon to your porch or apartment/condo building lobby. 

The combination of pandemic-driven growth of home deliveries and the business decision for Amazon to get into the direct delivery business certainly helped spike the sales of vans. Although sales have slowed down, it shows that these delivery companies, along with leasing firms and transportation companies, have made a commitment to expanding their business by giving the commercial vehicle business a boost. That includes adding battery-electric powered vans for their urban/suburban fleets. 

The van business is important for commerce in this country. That is an underlying fact that one should consider when they look at the commercial vehicle market. It is something we often forget about when it comes to this industry. 

That is, until you discover a small subsegment of the van business – recreational vehicles. 

For decades, large cargo vans were seen as ripe for van conversions. Not just for campers, but for…how could I say this…”personal expressions of lifestyles.”

Volkswagen led the way with the Westfalia conversions of their Type 2 Microbus. Firms, such as Winnebago among other RV companies, saw that they can do more with North American vans because of the space they offered for conversions. Winnebago leads the industry as they continue to work with the current crop of Ford, Mercedes-Benz, and Ram cargo vans for RV conversions.

As an upshot of this market, overlanders have also taken to cargo vans for their own conversions. For example, the Mercedes-Benz Sprinter is equipped with all-wheel drive that is easily convertible for suspension lifts and other modifications for going off the grid and exploring deeper into the land. 

Why talk about commercial vehicles and vans? Every time I head towards my usual shopping and coffee spots south of where I currently live, I see hundreds of vans flying around their bases nearby. There are Amazon, FedEx, and UPS facilities in that vicinity. It made me wonder if the automakers who are producing these vans are benefitting from the number of units on the road.

For the time being, your Amazon Prime or FedEx delivery is arriving by a van – any van. Hopefully, ina. recently purchased or leased one. 

All photos by Randy Stern