The Car and Truck Fleet and Leasing Management Magazine

AFLA 1980

November 1995, by Staff

April 1980 - Spring Meeting

Date: March 1980
Location: New Orleans

The following is an article that appeared in the May 1980 issue of Automotive Fleet.

Uncertainty over the economy and a record turnout marked the annual Automotive Fleet & Leasing Association (AFLA) meeting during early March in New Orleans. Over 260 persons attended as concern over skyrocketing interest rates dominated discussions both outside and during formal sessions.

The reality of tight economic times ahead was hammered home as prime interest rates set new highs as AFLA met. Assessing this situation and predicting that harder times are ahead before things will get better, Steve Leskovsky, president of Commercial Credit/McCullagh Leasing delivered the keynote address.

"Dramatic changes in the economic environment in the last three weeks have left most business people scratching their heads and wondering where it all ends," he said. The blame for the confusion over the current economic conditions in the U.S. can be laid squarely on the "inconsistent actions, over actions, and non-actions of our representatives at the federal level."

Leskovsky said the federal government's decision that federal reserve and monetary policy were the only means to stop inflation has result in the skyrocketing prime rate and a general drying up of the money markets. "Rather than suppress demand for money," however, "these actions have dramatically increased loan demand in the nation's banking system." It has resulted in a run by businesses borrowing funds in the commercial paper market.

As a result, "the country is sitting on a powder keg. In 1970, Penn Central, who was a heavy borrower in the commercial paper market, went bankrupt, triggering panic in that marketplace," he said. "The same scenario took place again in 1974 when two major companies who were borrowing heavy in the commercial paper market went bankrupt. The likelihood for a recurrence of those events today is very strong. One major bankruptcy of a company who borrows heavily on the commercial paper market, and the supply of funds available to the market, will flee to safer investments, primarily short-term borrowers over the brink or close to the brink of disaster."

CONTINUED:  AFLA 1980
« Previous  |  1  2  3  4  5  6  |  Next »
Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

FleetFAQ

Fleet Tracking And Telematics

Todd Ewing from Fleetmatics will answer your questions and challenges

View All

 

Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All

 

Sponsored by

Hal Barton held sales, finance, and fleet executive positions with GMAC, Ford, and Chrysler.

Read more

Blog

Market Trends

Mike Antich
Institutionalizing Cost-Control Strategies

By Mike Antich
Senior management exerts intense pressure on fleet managers to control and/or reduce vehicle acquisition and operating expenses. To accomplish this, a fleet managers can pursue three different cost-control strategies — cost savings, cost deferral, or cost avoidance. In order to implement a successful cost-control strategy you need to institutionalize the mechanisms to curb money-wasting behaviors.

Lessons Learned from Great Fleet Managers

By Mike Antich

View All

Driving Notes

Paul Clinton
BMW Ultimate Driving Experience

By Paul Clinton
BMW is hosting six Ultimate Driving Experience events around the U.S. this summer and fall that puts drivers behind the wheel of the 2017 540i, the first of five planned 5 Series models in the lineup's seventh generation.

2017 Hyundai Ioniq Electric

By Amy Winter-Hercher

View All

Nobody Asked Me, But...

Sherb Brown
Who’s Up Next?

By Sherb Brown
Are you taking the time to keep an eye out for the person who is going to fill your chair when you decide to move on?

Keeping Your Eyes on the Prize

By Sherb Brown

View All

Data Points

Dylan Brown
Does Telematics Branding Translate to Adoption?

By Dylan Brown
We asked over 750 fleet professionals questions about the prevalence of each provider in the market and their brand recognition.

How Fleet Size Dictates Telematics Needs

By Dylan Brown

View All

In Memoriam: Coach's Insights

Ed Bobit
Thinking of the Newbies of the Future

By Ed Bobit
A lot has changed in the past 10-15 years, so we can only imagine this momentum will continue into the next decade-plus. How will this change impact the fleet manager of tomorrow?

Managing a Car vs. Work Truck Fleet

By Ed Bobit

View All

STORE

Up Next

More From The World's Largest Fleet Publisher