I've found that an overlooked psychological factor contributing to auto accidents is the driver's dislike for his ear.-Dr. Sheldon Zigelbaum

If you think nobody cares if you're alive, try missing a couple of the payments -Earl Wilson

The automobile is technologically more sophisticated than the bundling board, but the human motives in their uses are sometimes the same.-Charles M. Allen

 

After all is said and done, the automobile may be at the root of it all. What am I talking about? I'm convinced that someone has to explain to me just what is going on. For instance, why do we have to lose two really nice guys like John Rowley at Lincoln Mercury and Bob Allen at Chrysler to retirement?

What's behind the continuing rage to acquire leasing companies? For the past few years, they've been telling everybody that the profit centers are eroding, competitive postures are such that proper rates cannot be enforced for a reasonable profit, and company ownership and reimbursement now appear attractive to some firms. Yet, the financial institutions are undaunted in their quest until they discover it really is a mixed bag. One of those "new" lessors brought in a new purchasing guy, who then called in all the fleet factory people for a "command performance;" only the lessor made it clear that they expected new special buying allowances to help them expand their profit. He actually wanted the prime daily rental allowances and even vowed to buy or create a daily rental operation to qualify, even though he had to realize that factory costs are substantially different for the large, single order, individual delivery point deliveries versus drop shipping a few all over the country over a long period. Will someone tell me why this is going on?

When every one of our interview with truly professional fleet managers identifier a strong relationship with company management why are some other fleet managers so concerned with the publishing of Fleet Financials, which is directed to senior executives at large fleets to make them knowledgeable about the importance of vehicle asset management and the vital value of the fleet manager? Will someone explain that one to me?

Even other people are asking why it only took Ford Motor Co. three moths to negotiate the purchase of U.S. Leasing International and now they require a "year-long study" to determine what they will do with the vehicle lessor portion called USFL.

One noted factory fleet director indicates that he feels fleets should enjoy the on-again off-again retail dealer incentives that sometimes get up to $1,600 per car when you combine the discount and interest rate come-ons, and that might be $500 more than a fleet can get. He thinks that he can sell management on this for Fall. It's simple and makes sense, plus it would be a great cost savings for the fleet buyer, but can you imagine what the dealers would say and do? Custer would prefer the Indians. It's crazy what's happening.

Frank Olson, Hertz Rent-A-Car chairman, may have reservations on buy-back programs, but the GM divisions are committed to be competitive and will have a quarter of a million in the program this year when they didn't have one three years ago. How competitive is this market going to get, and how is it going to affect recycling? Will you please tell me?

We all know about the electronic revolution in cars, but when the GM divisions hold their national fleet preview live in Detroit in early June, it will also be live in more than 20 cities via satellite. Innovative? You bet! And it may not have a "cast of thousands", but I'll watch all those new cars and Morgan Fairchild anytime. Tell me, who's going to out-Star Trek this effort? I've been a constant and strong advocate and supporter of the fleet manager function for over 30 years, and fleet managers still struggle for recognition. We try to help through these pages and with Fleet Financials, but the problem persists. Why not forget the NAFA Affiliate's night just one year and place the money contributed to a national public relations campaign focusing on the merit of the fleet function and direct it to executive management? Stop by our booth at the NAFA Fleet Fair and tell me what's wrong with the idea. You can also register your ideas as to how Automotive Fleet, Fleet Financials and Business Driver can help reach this long-time objective of mine. We'd surely like to see you in San Francisco.

 

 

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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