February 02, 2010
Press Release
GE Capital Fleet Services Identifies $256M in Cost Savings for Customers in 2009
EDEN PRAIRIE, MN - GE Capital Fleet Services announced full-year results for its cost-savings efforts for customers in 2009. Total savings identified were $256 million, with total-cost-of-ownership analysis yielding the highest opportunity at more than $50 million.
"Our strategic consulting group helps customers evaluate their core business requirements in order to streamline their fleet operations and provide a higher ROI on their fleet investment," said Mark Smith, strategic consulting services leader at GE Capital Fleet Services. "As the economy begins to recover, we expect green initiatives to continue to gain momentum, resulting in long-term changes to company fleets that benefit both the environment and the bottom line."
In descending order, the areas of highest cost savings identified during the year include:
-- Total-cost-of-ownership analysis ($50 million): Using cost analysis to evaluate and select OEMs and vehicles.
-- Optimal replacement strategies ($40 million): Determining the optimal time to cycle vehicles in fleet given applicable costs.
-- Lease options versus reimbursement programs ($26 million): Moving from mileage reimbursement plans to company car programs.
-- Strategic planning ($20 million): Using benchmarking and best practices to identify opportunities and create a multi-year strategic plan.
"In a weakened economic environment such as 2009, it was important to highlight key areas where our customers could increase productivity while generating cost savings," said Clarence Nunn, president and CEO of GE Capital Fleet Services. "We are committed to helping our customers reach their goals while continuing to provide services that make fleet management more efficient both fiscally and operationally."
About GE Capital Fleet Services
GE Capital, Fleet Services, based in Eden Prairie, Minn., is a global fleet management company with operations in the United States, Canada, Europe, Japan, Australia and New Zealand. Visit the Web site at www.gefleet.com. GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit gecapital.com or follow company news via Twitter (@GECapitalNews). GE is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. Visit ge.com.