Ed Bobit's Publisher's Page

Facts are to the mind the same thing as food to the body. On the due digestion of facts depends the strength and wisdom of the one, just as vigor and health depend on the other. The wisest in council, the ablest in debate, and the most agreeable in the commerce of life, is that man who has assimilated to his understanding the greatest number of facts.-Edmund Burke (1729-1797).

Our AF staff, both editorial and research, has been working for the past three months on developing, confirming and double-checking the myriad entries in this ninth edition of our Fact Book. Collecting factual material that has direct bearing on our own industry is challenging enough, but attempting to put it into print accurately presents an even greater responsibility that taxes our staff. We are proud to deliver this vital and exclusive data as part of your regular subscription to AF and thank all of the industry firms for their cooperative efforts to make it the most complete package ever compiled for fleet managers.

As publisher, I feel strongly that some of the data presented needs analysis to assist you, the reader, in obtaining the full import of the numbers generated.

For instance, with revised figures for total fleet sales in the 1975 model year, we learn that we did not fall under the one-million sales level after all. That keeps the one-million-plus sales streak alive since we broke the barrier in 1969. We still have a distance to go to top the 1.3-million sold in 1973. It is important to note that the market sold over 100,000 more fleet cars in the '76 model year than in '75.

And from early '77 model year reports, we could be pushing the 1973 record. That is good news for everyone. Fleet import sales rose from 55,000 to over 66,000 raising their market share from 3.6-percent to 4.9. This is a notable increase in light of a number of new domestic subcompact models with many makers and dealers reporting little interest in the smaller cars.

Even though fleet sales were up over 100,000 cars, the total industry (retail and fleet) rose by an even greater percentage moving from 7.5-million (including imports) to 9.6-million in '76. Correspondingly, the percent of total fleet sales compared to total industry sales fell from 13.7-percent in '75 to 11.7-percent in '76. That translates into a fleet delivery for every nine cars off the assembly line.

Every make except one registered a healthy fleet sales gain in 1976. Several makes made significant gains including American Motors with a healthy showing; Buick going from 50,000 to nearly 82,000 for a 6.9-percent of market; Olds with the striking increase from 62,000 to 99,000 and an 8.3-percent market share; and Chevrolet again regaining fleet's first place.

Interestingly, the GM divisions collectively increased their market share over 5-percent which amounts to about a third of the total fleet market increase in sales. GM now accounts for 45-percent of fleet sales while they are pushing 60-percent at retail.

This last paragraph leads me into my blood-boiling experience when witnessing the recent Ford Dealer Alliance advertisement in the trade press questioning (and not too subtly) Ford's distribution system for their "hot cars" and indicating that fleets are "getting them all."

Mr. Ed Mullane, an activist Ford dealer who signed his name to the ad, could well invest his time by attending an AFLA meeting to find out what fleet is all about. He never has.

For example, he might learn that the fleet business is darned competitive, too. That he has every right and opportunity to share in the fleet business if he wishes. That Ford division sold over 371,000 fleet cars in the '76 model year but still lost 2.5-points of market share in spite of selling 28,000 more fleet cars than in '75. That every fleet sale goes through a dealer. That fleet buyers view the new models at the same time as the dealers but, unlike the dealers, often order their fall requirements (and sometimes commit for the entire model year) during the summer months, well ahead of the dealer's monthly orders. That exposure to fleet and daily rental buyers can and does mean stronger preferential buying at retail. That fleets represent volume orders consistently, in good as well as poor sales years, with turnover at twice the average retail customer's rate. That volume customers in every industry earn a right to ordering opportunity. And that fleet accounts pay then bills at least as well as retail buyers.

That is for the record. And, it is factual.