Prejudices subsist in people's nation long after they have been destroyed by their experience. -Ernest Dimnet

Prejudice is never easy unless it can pass itself off for reason. -William Hazlitt

In overcoming prejudice, working together is even more effective than talking together.-Ralph W. Sockman

Your impression of how an editor/publisher spends his time may be a bit different than the reality. Many believe that my dance card is full of lavish cocktail receptions, press review dinners, and sunning beside some pool at an exotic hotel waiting for the next meeting. When time permits, there is a sprinkling of those kind of perks but more often, when we are not hacking away at the computer or playing telephone tag in the office, we are at some proving ground in Michigan, Arizona, Texas, or California; or at some raceway inspecting and driving new models: or tying to be alert during the many plant tours.

A few weeks ago, however, my routine was altered when I enjoyed the interesting cultural experience of my first visit to Japan, thanks to Mazda's special invitation to preview their new fall models. Besides the new 929, I had the opportunity to test drive the all new (and hot driving) 323 Protégé LX with a 1.8 -liter, dual overhaul cam, 125 hp engine at their Miyoshi Proving Ground High Speed Test Track. The significant improvement in the three-year-old original model typifies the effective and relentless efforts by import makers to combine quality and innovative engineering to attract world buyers (which includes U.S. fleets).

Domestic vehicle marketers also are demonstrating unique qualitative competiveness to maintain or secure their market share of retail sales; but they are encountering the first serious threats from a weakening allegiance among fleet buyers in the arena where "U.S. Made" has always held an incredible dominance.

Inroads by the imports into daily rental and the retail leasing segments of the fleet market are well known. With product and programs well in place at the major imports, the commercial fleet market can expect a direct frontal assault; it's the last bastion of nearly exclusive domestic purchases of vehicles. With Ford, GM, and Chrysler maneuvers through financing, ownership, and guaranteed purchase contracts with the rental companies, they have effectively preempted any large penetration by import competition in this high volume area. For some years the imports have been successful in edging into the utility and state and local government markets. Now the commercial fleets will become the marketing battleground.

Few people know that the leading imports are now on the selector lists of some of the more "progressive" fleets as well as gaining the recommendation of several of the larger lessors. A study of the announced '09 incentive programs shows that buy-backs for rental companies and guaranteed resale plan by imports are totally competitive to domestic programs. Toyota, Nissan, Mazda, Mitsubishi, American Isuzu, Subaru, and Volvo have fleet programs. Recently Hyundai, Daihatsu, and Suzuki have expressed interest in the fleet market and are developing initial programs. Honda, a volume retail sales leader, has resisted any overt fleet activity as they have retail incentives, until recently. One Chicago lessor reports that his local Honda dealer came by and offered him any model for $100 over. According to fleet registration figures based on domestic fleet account parameters, Honda sold more than 50,000 cars last year to recognized fleets; and more than 10 percent of those to commercial accounts (including 554 Integras). How far away can it be for a formal Honda fleet program?

Chevrolet's Geo (import) models registration more than 18,000 fleet units last year. Major imports are producing cars and content from Mexico and abroad. Chrysler has Diamond Star in Illinois and Ford has Mazda in Michigan. Whether you, as a fleet manager, may or may not be prejudiced toward the concept of the "world car" you'll have to accept the fact that the transition is about complete. But, most certainly, you can find solace in having a myriad of varieties to which you can apply your ultimate "freedom of choice.

 

About the author
Ed Bobit

Ed Bobit

Former Editor & Publisher

With more than 50 years in the fleet industry, Ed Bobit, former Automotive Fleet editor and publisher, reflected on issues affecting today’s fleets in his blog. He drew insight from his own experiences in the field and offered a perspective similar to that of a sports coach guiding his players.

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