News from the CCIC mid-winter meeting

CCIC hosts mid-winter meeting with fleet administrators, factory-reps, and fleet dealers.

Just as '69 was drawing to a close, Commercial Credit Industrial Corp. sponsored their annual fleet leasing conference in an effort to anticipate the problems of the rapidly expanding leasing market of the upcoming New Year and the years ahead. Present at the meeting which sought to air operating hang-ups and suggest methods of improvement for fleet administration, were specialists in fleet administration and fleet sales, as well as factory representatives from American Motors, Chrysler-Motors, Ford Motor Division and Lincoln-Mercury Division.

Presenting the fleet administrator viewpoint were Benjamin Adreach of Beech-Nut, Inc. Austin Geiling of Hershey Foods, Vernon McAllister of Brunswick Corporation's Aloe Division; Eric Meyers of W.R. Grace's Cryovac Division, and Hebert Scoville of Texas Industries.

Those representing the fleet-dealer interests included Edward Freed of Freed Brothers, Don Fenton of Tom Edwards Chevrolet, Jack McLaughlin of Archway Ford, Earl Stewart of Ruckle Pontiac, and Jack Rosenbaum of Park Circle Chevrolet.

Pre-Delivery Prep

Of prime importance to those attending the meeting were policies covering the preparation of new fleet cars for delivery. Dealers on the panel agreed that such work should involve tightening of undercarriage bolts, checking gaskets, fluid levels, and door alignment, diagnostic testing of the engine, and checking of all mechanical items. There was also general agreement among the group that this work could be performed during a period of one to three hours at an approximate cost of $20. In the event that mechanical breakdowns occurred due to allegedly faulty preparation, the group suggested that the lessees pay to have the defect corrected and then later seek reimbursement from the supplying dealer or the manufacturer.

Concerning the problems of pre-delivery preparation, John Blessing, President of CCIC advised that his company was investigating the feasibility of establishing its own prep centers sometime in 1970. He attributed the need for such a plan to the increased pressures on dealers who are forced to handle an ever-increasing volume of deliveries due to fleet sales, and pointed out that some manufacturers are already setting up prep centers in an effort to solve problems of their dealers.

Warranty Work

With regard to warranties, it was pointed out that all franchise dealers should honor a warranty (assuming the customer has his warranty card and booklet), regardless of where the supplying dealer is located. In the event a particular dealer should refuse to perform the work, it was suggested that the driver pay for the repairs and then refer the paid invoice to his lessor for subsequent settlement with the supplying dealer or the manufacturer. In the perennial grey area of defects that can be attributed to either faulty prep work of the dealer or a defective part of the vehicle (which would then come under warranty), the dealers advised that they have been experiencing difficulty in obtaining reimbursement for such work from the manufacturers and are thus reluctant to perform it for the fleet driver who is not a regular customer. Again, they suggested that the driver pay for the repairs, submit the bill to his lessor, and have it submitted to the supplying dealer or manufacturer.

Used Car Sales

Focusing on the problems of the administrator, the conference also touched on the problems of used car turn-ins and inspection reports. In many cases, according to the fleet administrators, there are great discrepancies between their reports on the conditions of the vehicles their drivers turn in and the inspection reports of the dealer or lessor who must handle the sale of the used car. In addition, the administrators advised that many dealers are not aware of the importance of used car turn-in reports and delay submitting their invoices or are inaccurate in making invoice itemizations.

The whole subject of used cars was explored further in a used car seminar in which the participants suggested possible ways of avoiding sales during low market periods, new methods of disposal, and techniques for obtaining better prices during slow markets.

Backstop Services

Of possible interest to fleet administrators was the subject of so-called "backtop services" which can be provided by lessors to cut down on the volume of fleet administrative work. Such a service is CCIC's Fleet Operation Management Service which was introduced last year (see Dec. '69 AF). Such a service can supply a fleet administrator with monthly, year-to-date, and lifetime expense analysis reports as well as relieving him of the detail work concerning registration fees, license and title regulations, and insurance problems.

Other Activities

In addition to the various panel discussion groups, the two-day meeting also featured seminars on sales, credit, business strategy, and a projection of business conditions in the '70's.

Commenting on the purposes of the annual meeting, CCIC's Blessing stated they were numerous. He explained, "we want to know our suppliers and clients better. We want them to become acquainted with the administrative staff with whom they deal throughout the year. And we want to give them important information on economic and business conditions that will be of value to them the next year.

"But most important, we want to maintain a continuing rapport with these men-to discuss-face-to-face-their problems, frustrations and needs. For this is the only way we at CCIC can correct outmoded practices, learn what new services are required, and continue to grow with this fast moving industry."