Ed Bobit: Dog Days...?

Think like a man of action, act like a man of thought.-Henri Bergson

When you see a snake, never mind where he came from.-W.G. Benham

Miss Stein was a past master in making nothing happen very slowly.-Clifton Fadiman

In the country of the blind the one-eyed king can still goof up.-Laurence J. Peter

After attending the Houston NAFA Conference in April, I was prepared to begin the summer months lulled into complacency after listening to the expressions from many of the industry's fleet managers and marketing leaders that there just "wasn't much going on."

However, as of this writing in mid-June, it is apparent to me that the condition of the industry is anything but static. If you reflect for a moment, the fleet market could be equated to the sensational book I just finished, Barbarians at the Gate (the dynamic and almost unbelievable story of the LBO of RJR Nabisco), with a flurry of significant changes affecting us all seeming to be occurring at an accelerated rate.

While still digesting the large acquisition of McCullagh Leasing only a few months ago, GEC Fleet Services is now on a course of adding Leaseway of Puerto Rico with close to 9,000 vehicles under lease and some 1,100 in daily rental. GE was also first in the door when Xerox quietly sent out financial feelers for their Financial Services Division which, of course, includes LMV Leasing with close to 50.000 units in their portfolio. Both LMV and the Financial Services Division overall are right down GE's acquisition alley.

Another relatively quiet transaction was Atlanta's Lease Plan USA acquiring the 8,000 vehicles from Miami-based Ryder Fleet Management. The big get larger and the beat goes on.

On the heels of Mitsubishi buying Value Rent-A-Car with its 25,000 vehicles we see that Chrysler still has an appetite beyond its present stable of Thrifty and Snappy by finally negotiating a purchase of Dollar Rent A Car wrested from rental veteran H.J. Caruso, who is operating some 50,000 to 60,000 vehicles". Other import makers are also evaluating what options are left to ensure distribution of product. There really has not been a dull moment.

Maybe the loudest noise came out of Detroit during this "slow" period. Led by GM and matched by Ford, the daily rental companies now have programs with 100 percent repurchase. Yes. the Tonkins and Mullanes of our industry can now take heart; the remarketing functions at the majors will slowly diminish and may actually disappear permitting the GM and Ford dealers to fill in their own used car lots with little or no competition from rent-a-car companies. Some have intimated that GM has privately indicated a dedication to the 100 percent buyback for a number of years which should encourage major rent-a-car companies to close their remarketing programs. The bold GM move is a costly one to be sure. Industry observers indicate a staggering sum on top of what has been considered "expensive" to all makers. Some see that the import carmakers may not be able to justify the investment to remain competitive with the GM-type programs. GM could possibly double its rent-a-car penetration and markedly move up its market share overall.

Now, just exactly who was it who said there wasn't much happening...?