Advertisement

The Car and Truck Fleet and Leasing Management Magazine

Nobody Asked Me, But...

It’s a Great Time to Be in the Fleet Business

June 7, 2016, by - Also by this author

The pace of change in the fleet market is incredible. While it’s not a part of the “tech” industry, the evolutionary and revolutionary changes are coming just as fast and furious. The massive improvements in fuel economy would have been unimaginable a few years back. The data available through the various telematics platforms is staggering; way beyond what anyone imagined a few years back when people were just excited to be able to track some dots on a map. But probably the biggest change has come on the safety front.

The light- and medium-duty manufacturers have made some great strides in developing new collision-avoidance and mitigation technologies. But, as usual, most of the really good stuff is only available on the “diamond titanium” package or on the highest of high-end vehicles.

The fleet managers that I know did everything but stand up on their desks and scream that they needed the same stuff on the base level fleet models. And, surprisingly, they said they were willing to pay for it too.

Making changes to option packages for a vehicle manufacturer is not the kind of thing that is entered into lightly. If you have ever been on the floor of a vehicle manufacturing plant and have seen the amount of tools, parts bins, wire harnesses, microchips, etc. that go into a modern automobile, you were probably just as amazed as I was. It’s an incredibly complex process. Once the process is in place, making any significant changes is usually a 3-5 year process. The engineers need to get involved. The finance people need to get involved. The marketing people need to bless it. And the boss has to agree that it all makes economic sense.

Things like “take rate” are incredibly important and studied religiously. There’s no point in offering a whiz-bang option if no one is actually going to order it.

In the current climate, it would have been totally understandable if the OEMs took a couple years to study the implementation of these new technologies. But they didn’t. Several have taken a leap of faith, bypassing the usual analysis paralysis, and have driven the best safety options down to the popular fleet spec vehicles.

You don’t need the gold package to get blind-spot monitoring anymore. Likewise, you don’t need to also take the heated steering wheel to get adaptive cruise control. You don’t need Corinthian leather to get the frontal crash avoidance package.

So it’s a great time to be in the fleet business. It’s a great time for fleet managers to make a real difference, save money, save lives, and make their businesses more productive. And you can do it all now without breaking the bank.

If you disagree, let me know.

Comments

  1. 1. Denise C [ June 14, 2016 @ 06:03AM ]

    Sherb,

    Very nice article, and I agree, it is a great time to be in the fleet industry!

  2. 2. Laura Puente [ July 01, 2016 @ 11:45AM ]

    Sherb,
    Safety is key always. Keep in mind fleet managers can retrofit their existing vehicles with cameras, sensors and collision avoidance technology today without buying new vehicles. Indeed it is a great time to be in the fleet business!

  3. 3. Diego Dana [ August 02, 2016 @ 12:06PM ]

    Laura, good point, safety is paramount so let's not forget that operators should have a reliable easy to use "Get Unstuck' device like Trac-Grabber when stuck in snow or mud in adverse weather conditions to get unstuck quickly and back on the road safely.

Comment On This Story

Name:  
Email: (Email will not be displayed.)  


Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that comments may be moderated.

Fleet Incentives

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

Sponsored by

Co-founder, with Armund Schoen, of Wheels, Inc.

Read more

Author Bio

Sherb Brown

Vice President and Group Publisher

Sherb Brown is the vice president and group publisher for BBM's AutoGroup. Sherb has covered the auto industry for more than 12 years in various positions with Bobit Business Media.

» More

More From The World's Largest Fleet Publisher