Work Truck - Market Trends Blog

94% of Fleet Managers Don’t Know the Whereabouts of Their Fleet Vehicles

Tue, 28 Oct 2008 09:13:41 PST

Do you know the location of your fleet vehicles during work hours? The most likely answer is no. In fact, nine out of 10 fleet managers have no idea where their fleet vehicles are at any given time. This assertion is based on a recent study that revealed 94 percent of those who operate corporate vehicles are completely unaware of their fleet’s location during work hours. However, this may soon change as a result of growth in the deployment of mobile resource management (MRM) systems.

Vehicle Quality is Up, But So is Cost per Repair

Fri, 24 Oct 2008 10:23:08 PST

Vehicle quality has improved dramatically with fleets experiencing a decline in the frequency of vehicle repairs. However, the average cost of repairs has been increasing. The forecast is for the cost of fleet maintenance to increase again in 2009. There are five factors exerting upward pressure on cost per repair.

Fleet Operating Costs Increase Again in 2008

Tue, 21 Oct 2008 08:32:21 PST

Although gas prices started to decline in August, the year-to-date cost of fuel in 2008 has increased 30 percent compared to last year. The price for replacement tires rose 5-10 percent in 2008 due to higher oil prices and the shift by manufacturers to larger diameter tires. Also, fleet maintenance and repair costs increased across the board in 2008. The cost for non-warranty maintenance services was up 5 percent for fleets.

Down the Road:
Observations on the people, events, and issues of fleet.

Thu, 16 Oct 2008 15:40:21 PST

Mike Antich is taking the day off from today's Market Trends blog. In its place is Down the Road, the first post of a new blog by Cindy Brauer, Automotive Fleet managing editor. Watch for the return of both blogs next week.

Replacement Tires: A Growing Fleet Expense

Tue, 14 Oct 2008 07:49:40 PST

Replacement tires are the third-largest expense category for fleets. In the past three years, this expense category has grown as a result of multiple price increases from all major tire OEMs. In 2008, year-to-date tire replacement costs have increased 4-10 percent. This follows a 3-4 percent price increase in 2007 and an 8-10 percent price increase in 2006. The consensus is replacement tire prices will increase again in 2009.

Fuel Continues to be the No. 1 Threat to Fleet

Fri, 10 Oct 2008 09:06:17 PST

The number one threat to fleets continues to be the price of fuel, despite the fact that fuel prices have been declining due to the global economic slowdown. Year-to-date, the cost of fuel has increased 30 percent in 2008 compared to 2007. The Energy Information Administration is projecting fuel to average $3.82 per gallon in calendar-year 2009. Fuel is the potential game changer of the fleet industry. Consider two recent examples as harbingers of things to come.

Federal Reserve Invokes Emergency Powers to Support the Commercial Paper Market

Tue, 07 Oct 2008 09:10:32 PST

Today, Oct. 7, the Federal Reserve Board announced that it is invoking emergency powers to create a special fund to support the U.S. commercial paper market. The announcement by the Federal Reserve allows corporations to bypass the current credit gridlock gripping the nation’s economy. This has an impact on the fleet market since one source of financing for large fleets is the commercial paper market.

Anti-Idling Programs: A Quick Way to Reduce Fuel Spend

Fri, 03 Oct 2008 12:30:50 PST

Reducing unnecessary idling is the simplest and easiest way for a fleet to reduce fuel costs. Besides wasting fuel, excess idling also causes unnecessary emissions, noise pollution, and needless engine wear-and-tear. The amount of unnecessary idling varies by fleet, but some fleets have recorded idling as much as 35 percent of the time.

Credit Gridlock Will Impede Sales of Used Fleet Vehicles

Mon, 29 Sep 2008 12:25:28 PST

The bread-and-butter customers of out-of-service fleet vehicles are buyers with C and D credit, namely subprime buyers. However, funders have tightened underwriting standards to manage these higher risk borrowers. Some lenders have caps on how low a FICO score they are willing to fund, which is often above the threshold of subprime borrowers. If this continues, it will have significant long-term implications for the sale of used fleet vehicles.

Comprehensive Safety Analysis 2010: A New Way to Reduce Truck-Related Fatalities

Tue, 23 Sep 2008 14:14:09 PST

Due to staffing constraints, the Federal Motor Carrier Safety Administration (FMCSA ) can currently only audit about 2 percent of nation's truck fleets. In response to these resource constraints, FMCSA is developing a Comprehensive Safety Analysis (CSA) 2010 initiative to implement new ways to reduce truck-related accidents. CSA 2010 will measure a fleet's safety performance through data uploaded from fleet compliance activities and accident reports.

Branded Fleet Vehicles Puts Drivers in Conflict with Homeowner Associations

Mon, 22 Sep 2008 15:23:39 PST

When a company decides to brand vehicles with either logos or full-vehicle advertising wraps, it may inadvertently create a situation that puts employees in conflict with homeowner association restrictions on the parking of commercial vehicles in common areas. Most homeowner associations allow commercial vehicles as long as they are garaged, but not all fleet vehicles can fit in a garage due to height or length. An estimated 50 million Americans live in homeowner association communities.

Confronting Non-Compliance & Fraudulent Personal Use Reporting

Fri, 19 Sep 2008 09:37:52 PST

The high cost of fuel is causing more employees to use fleet vehicles for personal use since many companies pays for gasoline. Although overall fleet mileage has increased, there has not been a corresponding increase in reported personal use miles. Companies that allow drivers to take vehicles home, but do not allow personal use, report a growing problem of policing unauthorized personal use by employees looking to reduce their "personal" fuel costs. This is a broad-based industry issue.

Mixed 2008 OTD Performance: Some Models Up, Some Down

Fri, 12 Sep 2008 14:33:04 PST

The 2008 model-year produced mixed results in order-to-delivery (OTD) perfromance. A protracted UAW strike and flooding in the Midwest delayed some models, while other models posted improved OTD due to reduced retail sales, which expedited fleet production. In addition, there was sufficient rail car availability due to soft retail sales and a decrease in quality holds.

Import-Badged Models Increase Market Penetration with 2009 Fleet Buy

Tue, 09 Sep 2008 11:19:13 PST

When fuel prices crossed the $3.25 per gallon threshold, fleets began looking for ways to downsize vehicles or opt to four-cylinder engines.This trend is reinforced by corporate sustainability initiatives and/or fuel spend/GHG reduction programs. The shift to four-cylinder engines is broad-based and includes many of the nation’s largest fleets. One consequence to this increased demand for four-cylinder models is that fleets have increased their purchases of import-badged vehicles.

Impact of Plant Shutdowns on Ship-Thru Deliveries

Mon, 08 Sep 2008 13:29:22 PST

With a dramatic decrease in retail truck sales, some fleets are concerned that assembly plant closures and production slowdowns may delay truck deliveries and ship-thru upfits. In addition, there are further concerns about potential fleet allocation issues, availability of transportation, extended lead times caused by shift eliminations, and reduced special equipment runs. One challenge is moving completed upfit vehicles back into "traffic" when an assembly plant is shutdown.

SEC Proposal to Allow Early Adoption of International Accounting Standards

Fri, 05 Sep 2008 10:33:57 PST

On Aug. 27, the Securities and Exchange Commission raised the possibility that approximately 110 U.S. publicly traded companies will be able to use international accounting standards (IAS) next year and may require all U.S. companies to switch to IAS between 2014-2016. There is a 60-day comment period about the SEC proposal. Fleet leasing will be impacted by the adoption of IAS. It is probable that all fleet leases in the U.S. will need to be capitalized sometime in the 2011-2016 timeframe.

The Hidden Cost of Personal Use

Tue, 02 Sep 2008 09:25:45 PST

With fuel prices remaining elevated, many companies are wondering whether they are charging enough for personal use. At some companies, this discussion is long overdue. When re-evaluating personal use charges, a common mistake is to focus solely on the cost of fuel, which is understandable because, after all, fuel is the catalyst for these discussions. However, doing so ignores the other “hidden” costs of personal use, which have also risen.

Fleet Becomes an Epicenter for Interdepartmental Encroachment

Thu, 28 Aug 2008 13:27:15 PST

Interdepartmental conflicts are common in the medical and IT industries, and at most companies between sales and operations. However, for many years, fleet existed as a realm of its own. Management in other departments often didn’t fully understand the nuances of fleet management other than they got a new vehicle every 36 months. Fleet managers of that era (not that long ago) were the “kings” and “queens” of their own realms. However, that reality is rapidly changing.

Strategic Fleet Management Focuses on Management by Objective

Mon, 25 Aug 2008 15:13:01 PST

The greatest challenge facing the future of fleet management is how we see ourselves as a profession. Are we administrators of a fleet or are we managers? Do we manage from a tactical level – putting out day-to-day fires – or from a strategic level focusing on specific long-term objectives using metrics to benchmark progress? In the future, you will need a strategic focus to succeed in fleet management; otherwise you run the risk of fading into irrelevancy.

When Fleet Collides With HR

Fri, 22 Aug 2008 08:41:38 PST

The Health Insurance Portability and Accountability Act of 1996 (also known as HIPAA) makes it a criminal act to divulge medical information to a third-party without the employee’s permission. Many fleet managers believe HIPAA non-disclosure requirements are counter-productive to fleet safety. One fleet manager lamented to me that “HIPAA is the worst thing that has ever happened to fleet.”

Fleet Safety Must be Your No. 1 Job Priority

Mon, 18 Aug 2008 12:57:04 PST

In two decades of chronicling the history of fleet management, I have seen interest in fleet safety ebb and flow. In an annual survey I conduct of fleet managers, they rated fleet safety as their No. 2 concern, right behind the cost of fuel. Why the renewed interest in fleet safety? More and more fleet managers are reporting an uptick in preventable accidents. In addition, fleet managers are feeling pressure from other corporate departments to increase fleet driver safety.

Upfitters Increase Prices 3%-8% Due to Higher Commodity Prices

Thu, 14 Aug 2008 13:44:06 PST

The high cost of materials has caused price increases for truck bodies, trailers, van interiors, liftgates, and other upfit equipment. Prices have increased, on average, 3-8 percent. Upfitting prices have risen multiple times and some truck equipment manufacturers are guaranteeing current prices for only 90 days. Worldwide, prices have soared for commodities used in upfitting, such as steel and aluminum.

Real World Strategies: 60 Ways to Reduce Your Fuel Spend

Tue, 12 Aug 2008 10:19:03 PST

Fleets are adopting compensatory strategies to offset high fuel costs. These include selector modification, revised vehicle specs, increased personal use charges, streamlined fleet operations, and modification of driver behavior.

More Factors Point to an Impending Used-Vehicle Shortage

Thu, 07 Aug 2008 08:46:33 PST

The past two weeks have produced a dizzying string of announcements ranging from Chrysler Financial stopping lease financing, Chase Auto Finance no longer providing lease financing for Chrysler brands, Wells Fargo ending lease financing, all major OEMs decreasing truck production volumes, and HSBC Financial Corp.’s decision to stop funding auto loans. All of which may be good news for fleets remarketing vehicles two to three years from now.

How to Develop a Corporate Culture of Fleet Policy Compliance

Tue, 05 Aug 2008 08:41:41 PST

The best time to control cost is before it occurs and the way to do this is by establishing policies and procedures that inhibit unnecessary spending and protect corporate assets. Adherence to fleet policy is crucial and it should be part of each company’s overall business strategy. The best managed fleets tend to be those whose drivers adhere to a written fleet policy. Does your corporate culture encourage compliance with fleet policy?

Will You Need Fewer Fleet Vehicles in an Era of Hyperconnectivity?

Thu, 31 Jul 2008 16:00:03 PST

In Tuesday’s blog, I likened predicting the future to a billiard game to illustrate that seemingly unrelated events can influence the future direction of the fleet market – events we may never see coming. With this in mind, let’s rack up our hypothetical balls, placing the “fleet ball” in the center of the rack. Let’s whack the cue ball to see what new fleet scenario may unfold from this catalyst. In this new analogy, the cue ball catalyst is a relatively recent concept called hyperconnectivity.

Is the U.S. Destined to Follow the U.K. Fleet Model?

Mon, 28 Jul 2008 11:21:29 PST

Predicting the future has been likened to a billiard game. The cue ball is the catalyst – representing a seminal event – that upon crashing into a racked set of balls triggers not only the initial reaction, but numerous unanticipated secondary and tertiary reactions. When the cue ball strikes its target, it unleashes unanticipated dynamics of balls deflecting off other careening balls, ultimately changing all of their trajectories. Let’s expand the analogy by making “fleet” one of the balls.

Fleet Management Circa 2018

Fri, 25 Jul 2008 09:24:11 PST

The greatest catalyst for change in fleet management in the next 10 years will be "technology." It is getting increasingly expensive to operate a fleet. There are diminishing opportunities to reduce cost and enhance fleet efficiency using traditional fleet management techniques. A growing number of companies are investigating (or are more receptive) to technology-based fleet solutions. Looking ahead, here are my predictions as to how technology will change fleet management in the next 10 years.

Rising Commodity Prices Threaten to Increase Truck Prices

Mon, 21 Jul 2008 12:28:37 PST

The high cost of raw materials, in addition to the high cost of fuel, is starting to make a financial impact on fleets by increasing costs for truck chassis, bodies, trailers, liftgates, and other upfit equipment. On July 9, Navistar announced that rising commodity costs have forced the company to increase prices of International truck models. Is this another in a series of commodity-related price increases that we will see from other OEMs, upfitters, and trailer manufacturers?

Bleak New-Vehicle Sales to Usher a Strong Used-Vehicle Market

Fri, 18 Jul 2008 09:01:41 PST

Today's new-vehicle market will generate (ultimately) the used-vehicle market of tomorrow. If there is a decrease in new-vehicle sales, there will be a corresponding decrease in the future number of used vehicles in the marketplace. Even though there is a lot of nervousness in the market, no one is anticipating a dramatic decrease in new-vehicle commercial fleet orders for the 2009 model-year. However, the same cannot be said for the retail new-vehicle market.

A Perfect Storm Pummels Truck Resale Values

Tue, 15 Jul 2008 08:56:17 PST

A combination of market forces have converged to create a “perfect storm” to drive down resale values for pickup trucks by 15-25 percent. These convergent forces are higher fuel prices, tighter consumer credit, and a stagnant construction market. As a result, the pool of buyers (hence market demand) for used trucks has contracted, putting downward pressure on resale prices.

Will High Demand for 4-Cylinder Engines Increase OTD?

Fri, 11 Jul 2008 08:19:09 PST

Although fleet is extremely important to automakers, the reality is that retail sales and retail considerations drive many OEM decisions. Currently, retail buyers are demanding four-cylinder engines in what appears to be a knee-jerk reaction to paying, on average, $4.03 per gallon for gasoline. Franchise dealers just don’t have enough four-cylinders in inventory to meet this demand and they are clamoring for more product.

'Location Privacy' Threatens to Emerge as a Major Fleet Issue

Mon, 07 Jul 2008 16:07:44 PST

I believe “location privacy” has a strong potential to become a hot-button societal issue in the next decade. It will focus on privacy infringement and potential abuse due to the pervasiveness of GPS-based products and services. These long-term implications frighten many privacy advocates. Unfortunately, I believe fleet management will be swept up into this controversy.

Accident Management Costs Trend Upward

Thu, 03 Jul 2008 15:50:07 PST

On average, 20 percent of fleet vehicles are involved in accidents each year. Although this percentage has remained steady from 2005-2007, the cost of repairing these vehicles is rising.

Increased Fleet Demand for 4-Cylinder Engines

Mon, 30 Jun 2008 16:03:41 PST

There is a growing belief among fleet managers that today’s high fuel prices are not a temporary phenomenon, but a new reality. Almost everyone is looking for ways to downsize vehicles (where possible) or opt to four-cylinder engines as part of either a corporate sustainability initiative or fuel spend / GHG reduction program.

The Dangers of Policy Exceptions

Tue, 10 Jun 2008 16:13:28 PST

It is these procedures and regulations that determine the types of fleet each of us operates and its characteristics. Think about it. By creating policy such as to who is eligible for a company vehicle, you are, in effect, determining the size of your fleet. In my discussions with fleet management companies over the years, they tell me that the best managed fleets tend to be those that adhere to a written fleet policy.

10 Milestones That Changed Fleet Management

Fri, 30 May 2008 16:05:11 PST

In the late 1930s and early 1940s, businesses started to migrate from salesmen reimbursement to company-owned fleets. Since then, 10 milestones have dramatically changed the nature of fleet.

Pros & Cons of TPMS for Class 3-8 Truck Tires

Fri, 23 May 2008 13:24:18 PST

The U.S. Department of Transportation is expected to release its revised medium-truck tire standard (FMVSS No. 119) during the second half of the year. However, it is anticipated that it won’t contain a provision calling for the use of a Tire Pressure Monitoring System (TPMS) for Class 3-8 commercial trucks. TPMS is an electronic system that monitors the air pressure inside pneumatic tires. Should TPMS be mandated for commercial trucks over 10,000 lbs.? Here are three reasons supporting this.

High Fuel Costs Take Fleet into Uncharted Water

Mon, 19 May 2008 16:35:58 PST

After 8,000 hours of research, more than 11,000 facts pertinent to the fleet industry have been collected for this year’s Automotive Fleet Fact Book. Within this wealth of data, one overriding fact stands out with klieg-light intensity – the impact of the high cost of fuel.

Avoid the Complacency of Running a Well-Managed Fleet

Fri, 02 May 2008 13:32:47 PST

Complacency. It is defined as self-satisfaction, especially when accompanied by unawareness of actual dangers or deficiencies. Is this you? Complacency is a real danger to fleet operations, especially well-run fleets.

Subprime Crisis Metastasizes to Fleet Resale Market

Mon, 21 Apr 2008 10:09:40 PST

An average end-of-service fleet sedan is three years old with 60,000-plus miles. The resale market for these used vehicles encompasses diverse demographics. However, in most cases, the dealers who buy fleet vehicles at auction will ultimately resell them to someone of limited financial means. In many cases, these buyers have less than stellar credit and may only qualify for a subprime auto loan. Since the onset of the subprime crisis, loan approvals for these customers are more difficult.

Reduce Fuel Spend by Modifying Truck Specs

Mon, 14 Apr 2008 09:32:09 PST

For the first time ever, the price of diesel in many regions of the country exceeds $4 a gallon. Since Jan. 1, diesel prices have risen more than 19 percent. The American Trucking Associations (ATA) predicts that truck fleets will spend more than $135 billion on fuel in 2008. This compares to $112 billion in 2007.

Medium-Duty Truck Operating Costs Increase (Again)

Mon, 07 Apr 2008 11:07:30 PST

The key reason for the increase was the cost of fuel, in particular, diesel fuel. This has also led to price increases for other oil-based products such as tires, which increased 4-7 percent in the past year. Other PM costs remained flat.

Think Like a Used-Car Sales Manager

Tue, 01 Apr 2008 10:41:20 PST

When resale prices soften, there is a pendulum-like resurgence in marketing used vehicles to employees. On the other hand, when the resale market is strong, fleets are complacent about employee sales (waiting for buyers come to them) and do not aggressively market the program to new buyers. The national average of vehicles sold to employees is 23 percent. However, by aggressively marketing employee sales, many fleets could sell as much as 50 percent of their vehicles in-house.

Loss of Control is Reimbursement’s Fatal Flaw

Mon, 17 Mar 2008 10:16:14 PST

Score one for our side! Recently, a Fortune 100 company gave (very) serious consideration to eliminating its company-provided vehicle fleet program and switching to driver reimbursement. Initially driving this initiative was senior management’s desire to cut cost by removing the vehicle assets from the books. The option to move to an operating lease was not viable since it violated the company’s accounting policies set by finance.

Economic Stimulus Act of 2008 Brings Back Additional 50% First-Year Bonus Depreciation

Mon, 10 Mar 2008 12:28:47 PST

On Feb. 20, 2008, President Bush signed into law HR 5140, the Economic Stimulus Act of 2008, which, among other things, includes an additional first-year depreciation deduction equal to 50 percent of the adjusted basis of a new vehicle. This temporary change to the federal tax code requires that all vehicles and other fixed assets be purchased and put into use by Dec. 31, 2008.

Managing the Uncontrollable

Mon, 25 Feb 2008 11:21:15 PST

The country’s best managed fleets are exemplified by the Top 300 commercial fleets. Operating a fleet of 1,000 vehicles or more is an expensive proposition and, with most companies, it represents the second-highest corporate expenditure after payroll.

Tire & PM Costs Increase Car Maintenance

Tue, 19 Feb 2008 12:08:27 PST

Increased cost of replacement tires and PM caused car maintenance expenses in 2007 to increase slightly higher than the prior year. Tire costs were up 4-7 percent, while PM expenses increased 10 percent. Other costs remained flat.

Economic Slowdown Causes Fleet Resale Values to Decline

Mon, 11 Feb 2008 14:58:58 PST

Most fleet vehicles are purchased by subprime buyers; however, these buyers are now finding it increasingly difficult to qualify for used-vehicle loans. The slowdown in the construction market is dampening demand for used pickups, and full-size vans.

Fuel Costs Exerting More Influence on Selector Development

Thu, 07 Feb 2008 13:37:08 PST

Overall operating costs for commercial fleets increased 3 percent, on average, in calendar-year 2007. The increased expense was directly attributable to the cost of fuel. The price of a gallon of regular unleaded gasoline increased almost 7 percent over the record-high prices in 2006.

10 Ways to Minimize DOT Scrutiny

Mon, 28 Jan 2008 12:08:18 PST

More and more medium-duty truck fleets are coming under DOT scrutiny through roadside inspections and on-site audits. Enforcement has increased noticeably in the past three years.

Forecast of Truck Fleet Management Trends: 2008-2010

Fri, 18 Jan 2008 16:11:39 PST

The No. 1 factor is the ongoing high cost of fuel, in particular diesel, which is driving management demands to lower operating costs. Another huge factor that will influence fleets will be the 2010 diesel emission standards.

Ban DWT (Driving While Texting)

Tue, 15 Jan 2008 10:59:34 PST

Texting is the latest form of driver distraction and it is becoming more prevalent. Dubbed “driving while texting” or DWT, it is the tapping out of messages using the keypad of a cell phone, PDA, or BlackBerry while behind the wheel of a moving vehicle.

Vehicle GPS Thefts Can Lead to Home Burglary

Mon, 07 Jan 2008 09:58:43 PST

Last December, an Acura executive fleet vehicle was stolen from a Fortune 500 corporate parking garage in Atlanta. In addition to stealing the vehicle, the thieves retrieved the “home location” information stored in the in-dash GPS system, which the exec had previously programmed into the system. Using the GPS data, the same thieves burglarized the exec’s home several days later - gaining access by using the garage door opener in the car.

Reimbursement vs. Company-Administered Executive Vehicle Program

Wed, 26 Dec 2007 12:17:08 PST

Although in-house management of an executive fleet is extremely time-consuming, reimbursement is a less cost-effective alternative. I argue that, in general, a company-administered executive vehicle fleet is a better choice than reimbursement.

Top 10 Trends in Truck Fleet Management

Mon, 10 Dec 2007 12:43:43 PST

As we start a new year, here is my forecast of the top 10 trends that will influence truck fleet management in the coming years.

Reimbursement is Unfair to Employees

Mon, 03 Dec 2007 10:12:21 PST

If employees are your greatest asset, why treat them unfairly with a driver reimbursement program? I have yet to hear of a company that reimburses at a rate that fully compensates drivers for the actual cost of operating a vehicle, especially in this era of escalating fuel prices.

Analyzing Depreciation Trends: 2007 vs. 2006

Tue, 20 Nov 2007 10:42:10 PST

Depreciation continues to be the largest fleet expense; however, fuel, as a percent of total fleet cost is growing (rapidly). Fuel expense is influencing vehicle acquisition strategies, with a direct bearing on future depreciation.

The Pros and Cons of Variable Personal-Use Charges

Mon, 12 Nov 2007 15:02:20 PST

Fuel prices are forecasted to increase again in 2008. Fleets are employing a multitude of strategies to control fuel costs; however, one area often overlooked is personal use.

Accident Management Costs Hold Steady

Mon, 29 Oct 2007 09:40:17 PST

The average fleet claim severity for 2006 was $1,869.87, an increase of $48.81 over 2004. Also experiencing a slight increase in 2006 was the percent of accidents deemed preventable.

High Cost of Fuel Increases Operating Costs in 2007

Tue, 23 Oct 2007 15:29:10 PST

Fleet operating costs have increased, but at a slower pace than 2006. Across all vehicle segments, this increase was directly attributable to increased fuel costs, with a domino effect for other oil-based products such as tires.

Driver Ergonomics: The Hidden Fleet Cost

Mon, 15 Oct 2007 14:53:45 PST

Driver ergonomic problems are a growing concern for truck fleet managers. I recently spoke with Tony Orta, asset management manager – Fleet Services for Sempra Energy Utilities, who cited some of the key ergonomic issues affecting his fleet.

The Next Wave: Fleet Management 2.0

Tue, 09 Oct 2007 12:03:22 PST

Fleet management, for the most part, is not an innovator of new technology; however, it is often an early adopter of new technology as exemplified by the industry’s almost-overnight conversion to Web-based fleet management.

Most OTD Times Improve in 2007-MY

Mon, 01 Oct 2007 10:37:59 PST

Order-to-delivery times improved for most 2007 models due to greater railcar availability with a slowdown in retail sales, greater allocation to commercial fleet orders from cutbacks in daily rental volume, and fewer quality holds.

Fleet Managers are Suffering from “E-Mail Stress”

Tue, 25 Sep 2007 14:31:05 PST

More than a third of all employees – 34 percent – feel stressed by the volume of e-mails they receive and the perceived obligation to respond quickly. Fleet managers are no exception to “e-mail stress.”

Fleet Managers are Suffering from “E-Mail Stress”

Mon, 17 Sep 2007 12:59:33 PST

Public Sector Fleets:All in a Day’s Work? It's Much More than That

Tue, 04 Sep 2007 11:17:20 PST

Summer and fall are busy times in the fleet industry. There are many fleet meetings and new-model introductions, which provides me with an opportunity to talk “fleet” with a wide variety of fleet managers. At these meetings, I am always impressed by the caliber of public sector fleet managers and the challenges they face.

Are Women Fleet Managers Treated the Same as Men?

Tue, 28 Aug 2007 08:15:09 PST

I recently conducted a survey of commercial fleet managers asking them to tell me their greatest challenges. One fleet manager, who I have known for a number of years, replied that her biggest challenge was dealing with “the issues of being a female fleet manager.”

Are Woman Fleet Managers Treated the Same as Men?

Tue, 21 Aug 2007 09:10:25 PST

Avoid Identity Theft Risk During New-Vehicle Pickup

Tue, 14 Aug 2007 11:08:42 PST

When your driver picks up a new vehicle, how does the delivering dealer know your employee is who they say they are? Typically, the employee receives paperwork from the leasing company (acknowledgement of order), which they bring to the dealership. While at the dealership, the driver is often required to show a driver’s license with photo to verify his or her identity. In some cases, the dealership makes a copy of the driver’s license. This has been done routinely in our industry for many years.

Not Covered by DOT? Think Again

Tue, 07 Aug 2007 12:13:06 PST

Most companies operating vehicles under 10,001 lbs. gross vehicle weight (GVW) believe they are not covered by DOT (U.S. Department of Transportation) regulations. However, this may not be the case if vehicles are towing a trailer or equipment.

Fleet Car Maintenance Costs Remain Flat for 2006-CY

Tue, 31 Jul 2007 09:24:50 PST

Maintenance expenses for fleet cars were flat during the 2006 calendar year compared to 2005. The main factors contributing to the stability of fleet maintenance costs in 2006 were longer oil drain intervals, extended tire tread wear, and increased life from ceramic brake pads.

Abbott Commits to a ‘Carbon Neutral’ Fleet

Mon, 23 Jul 2007 12:08:28 PST

Abbott is set to become the first Fortune 500 company to go “carbon neutral” with its entire U.S. fleet of company vehicles. This is a seminal event in the history of fleet management. It is emblematic of a much larger sea change occurring today in fleet management – the proliferation of corporate green initiatives and their influence on vehicle selector decisions.

It’s Dangerous Not to Know

Tue, 17 Jul 2007 08:37:54 PST

Industrywide, one out of three fleets does not order post-employment motor vehicle record (MVR) checks on employee drivers. When asked why, many fleet managers will tell you privately the reason for not doing so is that they would rather not know. The logic is by not knowing they distance themselves from potential negligent entrustment and negligent retention lawsuits.

Forecast of Commercial Fleet Buying Intentions for 2008-MY

Mon, 09 Jul 2007 09:54:22 PST

Increasing fuel efficiency and corporate “green” initiatives will be a much greater factor in selector decisions than prior years, according to surveyed fleet managers. However, for most, CPA monies are the deciding factor.

The Catch-22 Paradox of Green Fleet Initiatives

Wed, 27 Jun 2007 11:56:46 PST

Each month we are in contact with hundreds of fleet managers who manage fleets ranging from fewer than a hundred vehicles to mega-fleets of tens of thousands of units. This link provides us a strong pulse of what’s happening in the marketplace.

The Catch-22 Paradox of Green Fleet Initiatives

Mon, 18 Jun 2007 13:29:25 PST

The Cancer of Higher Fuel Prices

Tue, 12 Jun 2007 10:55:02 PST

Like a cancer, the malignant effects of the high cost of fuel have spread throughout the fleet industry. Many companies have seen fleet fuel expenses double in recent years. Especially hard hit are truck fleets as the cost of diesel has risen at a faster rate than unleaded gas.

Fleets Vulnerable to the Latest Crime Trend: Catalytic Converter Theft

Mon, 04 Jun 2007 10:06:43 PST

Thieves are targeting fleet vehicles parked overnight in secluded parking lots. Their target? Catalytic converters. The theft of catalytic converters is a growing crime trend happening throughout the country.

European Union Data Privacy Laws Complicate Global Fleet Management

Tue, 29 May 2007 15:41:04 PST

Web-based fleet management offered a vision of centralized global fleet management for multi-national companies. However, current (and possibly future) data privacy laws enacted by the European Union threaten to restrict the extent to which U.S. fleet managers can manage subsidiary fleets in Europe.

European Union Data Privacy Laws Complicate Global Fleet Management

Tue, 22 May 2007 09:17:32 PST

High Cost of Fuel Rekindles Reimbursement Debate

Tue, 15 May 2007 09:54:41 PST

For most companies, it is less expensive to provide a company vehicle than to administer a driver reimbursement program. Why would a company want to reimburse an employee $600 per month for a vehicle they can operate at $500 per month? However, after attending the annual conference of the National Association of Fleet Administrators (NAFA) last month, I heard that reimbursement is re-emerging as an issue in reaction to the high cost of fuel.

Overloading is the No. 1 Cause of Unscheduled Truck Maintenance

Tue, 24 Apr 2007 08:32:10 PST

Overloading creates an unsafe vehicle and increases liability exposure. When a vehicle is overloaded, its emergency handling capability is reduced, which can contribute to an accident. For instance, braking distance increases, which can cause drivers to misjudge stopping distances, and tire failure rates are higher because tires run hotter.

Fleets Restrict Driver-Paid Options to Avoid the Expense of Replacing Larger Tires

Tue, 17 Apr 2007 08:17:39 PST

In March, Goodyear, Bridgestone-Firestone, Continental, and Yokohama, announced they will increase the prices of replacement tires by 4-7 percent. The reason for the price hike is the ongoing increases in the cost of raw materials and manufacturing and transportation costs to move product to tire dealers.

Top Challenges Facing Public Sector Fleet Managers in 2007

Mon, 02 Apr 2007 12:52:23 PST

These include operating on a fixed budget in the midst of wild fluctuations in fuel prices, uncertainty about reliability of 2007 diesel engines, the dearth of technicians, and the ‘just one more year’ vehicle replacement battle.

Top Challenges Facing Public Sector Fleet Managers in 2007

Tue, 27 Mar 2007 12:41:14 PST

Top Challenges Facing Commercial Fleet Managers in 2007

Tue, 20 Mar 2007 08:16:46 PST

Key challenges facing fleet managers are managing the high cost of fuel, implementing safety programs to reduce preventable accidents, a relentless demand by management to cut costs, and a growing pressure to go “green.”

High Fuel Costs are Prompting Fleets to Tighten Employee Eligibility for Company Vehicles

Mon, 12 Mar 2007 13:21:50 PST

If you ask fleet managers what is their greatest challenge, the overwhelming majority will tell you it is managing fuel costs and identifying ways to decrease this expense. This is especially the case with fleet managers who manage fleets with heavy concentrations of diesel equipment.

Transcending Day-to-Day Fleet Management

Mon, 05 Mar 2007 15:14:36 PST

Each year, Automotive Fleet identifies the nation’s Top 300 commercial fleets. Typically, the focus is on the “hardware” – the total number of units managed. But the key to these successful fleets is the “software” – the fleet manager. Being a fleet manager of a Top 300 fleet is not an easy job. Throughout corporate America, fleet managers are under constant and ever-greater pressure to reduce expenses, make their fleet operations more efficient, and maximize driver productivity at the lo

Upfit Specs Can Reduce Workers Comp Claims

Tue, 27 Feb 2007 09:55:20 PST

Workers comp claims resulting from use of upfitted equipment is on the rise. Poor upfitting decisions often result in expensive litigation to defend against alleged negligence. The average workers’ comp cost for a pushing/pulling injury is $10,175, while the average cost for a lifting/bending incident is $8,989. Under OSHA regs, an employer must provide a workplace (which includes upfitted work vehicles) free from recognized hazards.

Fleet Hit With $4.1 Million Payment for Accident Caused by Distracted Driver Using a BlackBerry

Tue, 13 Feb 2007 08:13:22 PST

A 71-year-old woman was awarded $4.1 million in December 2006 because a company driver ran a red light while he was looking down at his BlackBerry and crashed into her. The employee, driving a Berry Electric Contracting Co. vehicle, was lost and was using his BlackBerry’s navigation device to find his destination.

Are the Benefits of Telematics Worth the Expense?

Tue, 30 Jan 2007 15:05:15 PST

Currently, there are more than 2.5 million telematic units in service managing fleet vehicles, mobile workers, trailers, heavy equipment and other assets. The market is expected to expand to 5.8 million units by 2009, with revenues growing to more than $2 billion.

Is Fleet Management Devolving to Crisis Management?

Tue, 23 Jan 2007 08:09:02 PST

Since the start of the 21st century, seven short years ago, fleet managers have been buffeted by one major crisis after another. Following 9-11, there was an overnight meltdown in residual values. Then, Hurricane Katrina triggered fuel prices to skyrocket to $3 a gallon, literally overnight. If someone told us in 1999 that resale values would plummet 30 percent in the space of months and that fuel prices would exceed $3 a gallon, we would have dismissed these predictions as Chicken Little hyster

Multi-Tasking While Driving is Causing a Rise in Preventable Accidents

Tue, 16 Jan 2007 09:05:44 PST

More and more fleet managers rank driver safety as either their number-one or number-two challenge (after the high cost of fuel). One reason for the heightened concern is that fleet managers are reporting an increase in preventable accidents, with the root cause driver distraction.

Multi-Tasking While Driving is Causing a Rise in Preventable Accidents

Tue, 09 Jan 2007 13:31:35 PST

Will Drivers Ultimately Demand Self-Serve Fleet Management?

Tue, 02 Jan 2007 10:36:25 PST

The U.S. is migrating to a self-serve economy. Interactive self-service technology permeates large swathes of our economy, with the retail, hospitality, banking, and travel industries being the early adopters. We utilize this technology with ATMs, online banking, pay-at-the-pump fuel stations, Web-based shopping, self-service retail checkout lanes, Internet-enabled travel reservation systems, and touch-screen kiosks to check-in at airports and hotels. Most of us don’t realize how huge this marke

Will Drivers Ultimately Demand Self-Serve Fleet Management?

Tue, 26 Dec 2006 08:28:00 PST

Telematics Captures the Missing Variables Needed for “Total Fuel Management”

Tue, 05 Dec 2006 09:01:20 PST

Controlling fuel costs is the number one challenge facing fleet managers, and it has been for the past five years. Nowadays, fuel consumes 28-30 percent of the total fleet budget.

The Use of Telematics to Increase Fleet Safety

Tue, 28 Nov 2006 13:33:14 PST

The use of telematics – the combination of global positioning systems (GPS) and remote diagnostics – in fleet continues to grow, providing fleet managers the ability to monitor vehicles and enhance driver productivity, thus saving money by controlling unnecessary idling and miles driven, fuel purchases, accidents, and other fleet functions.

Fuel Prices Drive Up Fleet Operating Costs in 2006

Tue, 21 Nov 2006 09:26:51 PST

Fleets were hit hard by the steady rise in fuel prices in 2006. In the past several years, some fleets have seen fuel expenses double or even go higher. Especially impacted were truck fleets as the cost of diesel rose at a faster rate than unleaded gas.

Work Truck - Market Trends Blog

94% of Fleet Managers Don’t Know the Whereabouts of Their Fleet Vehicles

Vehicle Quality is Up, But So is Cost per Repair

Fleet Operating Costs Increase Again in 2008

Down the Road: Observations on the people, events, and issues of fleet.

Replacement Tires: A Growing Fleet Expense

Fuel Continues to be the No. 1 Threat to Fleet

Federal Reserve Invokes Emergency Powers to Support the Commercial Paper Market

Anti-Idling Programs: A Quick Way to Reduce Fuel Spend

Credit Gridlock Will Impede Sales of Used Fleet Vehicles

Comprehensive Safety Analysis 2010: A New Way to Reduce Truck-Related Fatalities

Branded Fleet Vehicles Puts Drivers in Conflict with Homeowner Associations

Confronting Non-Compliance & Fraudulent Personal Use Reporting

Mixed 2008 OTD Performance: Some Models Up, Some Down

Import-Badged Models Increase Market Penetration with 2009 Fleet Buy

Impact of Plant Shutdowns on Ship-Thru Deliveries

SEC Proposal to Allow Early Adoption of International Accounting Standards

The Hidden Cost of Personal Use

Fleet Becomes an Epicenter for Interdepartmental Encroachment

Strategic Fleet Management Focuses on Management by Objective

When Fleet Collides With HR

Fleet Safety Must be Your No. 1 Job Priority

Upfitters Increase Prices 3%-8% Due to Higher Commodity Prices

Real World Strategies: 60 Ways to Reduce Your Fuel Spend

More Factors Point to an Impending Used-Vehicle Shortage

How to Develop a Corporate Culture of Fleet Policy Compliance

Will You Need Fewer Fleet Vehicles in an Era of Hyperconnectivity?

Is the U.S. Destined to Follow the U.K. Fleet Model?

Fleet Management Circa 2018

Rising Commodity Prices Threaten to Increase Truck Prices

Bleak New-Vehicle Sales to Usher a Strong Used-Vehicle Market

A Perfect Storm Pummels Truck Resale Values

Will High Demand for 4-Cylinder Engines Increase OTD?

'Location Privacy' Threatens to Emerge as a Major Fleet Issue

Accident Management Costs Trend Upward

Increased Fleet Demand for 4-Cylinder Engines

The Dangers of Policy Exceptions

10 Milestones That Changed Fleet Management

Pros & Cons of TPMS for Class 3-8 Truck Tires

High Fuel Costs Take Fleet into Uncharted Water

Avoid the Complacency of Running a Well-Managed Fleet

Subprime Crisis Metastasizes to Fleet Resale Market

Reduce Fuel Spend by Modifying Truck Specs

Medium-Duty Truck Operating Costs Increase (Again)

Think Like a Used-Car Sales Manager

Loss of Control is Reimbursement’s Fatal Flaw

Economic Stimulus Act of 2008 Brings Back Additional 50% First-Year Bonus Depreciation

Managing the Uncontrollable

Tire & PM Costs Increase Car Maintenance

Economic Slowdown Causes Fleet Resale Values to Decline

Fuel Costs Exerting More Influence on Selector Development

10 Ways to Minimize DOT Scrutiny

Forecast of Truck Fleet Management Trends: 2008-2010

Ban DWT (Driving While Texting)

Vehicle GPS Thefts Can Lead to Home Burglary

Reimbursement vs. Company-Administered Executive Vehicle Program

Top 10 Trends in Truck Fleet Management

Reimbursement is Unfair to Employees

Analyzing Depreciation Trends: 2007 vs. 2006

The Pros and Cons of Variable Personal-Use Charges

Accident Management Costs Hold Steady

High Cost of Fuel Increases Operating Costs in 2007

Driver Ergonomics: The Hidden Fleet Cost

The Next Wave: Fleet Management 2.0

Most OTD Times Improve in 2007-MY

Fleet Managers are Suffering from “E-Mail Stress”

Fleet Managers are Suffering from “E-Mail Stress”

Public Sector Fleets:All in a Day’s Work? It's Much More than That

Are Women Fleet Managers Treated the Same as Men?

Are Woman Fleet Managers Treated the Same as Men?

Avoid Identity Theft Risk During New-Vehicle Pickup

Not Covered by DOT? Think Again

Fleet Car Maintenance Costs Remain Flat for 2006-CY

Abbott Commits to a ‘Carbon Neutral’ Fleet

It’s Dangerous Not to Know

Forecast of Commercial Fleet Buying Intentions for 2008-MY

The Catch-22 Paradox of Green Fleet Initiatives

The Catch-22 Paradox of Green Fleet Initiatives

The Cancer of Higher Fuel Prices

Fleets Vulnerable to the Latest Crime Trend: Catalytic Converter Theft

Down the Road:
Observations on the people, events, and issues of fleet.