Automotive Fleet
MenuMENU
SearchSEARCH

Ed Bobit: Get Out Your Company Checkbook

'What have you told your senior management about the accelerated costs that loom in the immediate future?"

Ed Bobit
Ed BobitFormer Editor & Publisher
May 1, 1993
3 min to read


I suppose I should stop asking fleet managers the same question posed during the past few months. I'm human. When I don't get the right answer, my tendency is to discard the question. Okay, maybe you want to try it: ''What have you told your senior management about the accelerated costs that loom in the immediate future?"

Ad Loading...

Invariably, the retort is that management executives know that costs are bound to increase in spite of budget pressures. Or, when the budget is submitted for next year, there's plenty of time to discuss it. As an observer, I can only say that those kinds of reactions are shortsighted, represent poor communications, and are doing the company a serious disservice by ignoring reality.

Ad Loading...

What actually exists is a singular opportunity for the fleet manager to demonstrate leadership and understanding in his or her position. Relating the very real cost potentials for the five-year plan can alert executive management so they can prepare. They may even be able to influence the outcome to avoid the added burden by working in unison with you.

Every factory fleet department, the fleet management companies, and the fleet associations should deliver the message. Industry meetings should focus their theme or keynote address to identify the threat. Every fleet manager should vow to sense it and form a partnership with senior management to fight it or find an avenue to steer away from it.

What am I talking about? It's not Armageddon, but it's close. It's the dramatically increasing costs to operate and maintain your fleet in the years ahead.

Consider that if you are a "covered" fleet in a non-attainment area, you will be ordering 30 percent of your fleet vehicles with alternate fueled components in just over 50 months from now. Not only are you faced with substantial added acquisition costs, but higher fuel expense, possible fuel storage installations, ultimate greater losses in remarketing the used units, driver training, maintenance, and the larger interest costs on the additional investment. No one has yet figured out all the new exposed costs associated with compliance, but our September 1991 feature story. "Clean Air Act Amendments of 1990 Could Cost Fleets $43 Billion Plus." tagged them as "staggering."

Our new Clinton administration is responding to voters who have chosen "change" for the future. Without a regard to a multitude of hidden and related taxes coming, we are surely faced with a "BTU" energy tax that will be formidable plus probably 15 cents/gallon additional for the fuel of our choice. This starts adding up.

Ad Loading...

With the yen/dollar disparity, don't look for tough competition for the domestic vehicle makers. Don't expect domestics to hold the line on prices when their taxes are going up in a less competitive market. Just ask the rental companies what's happening.

Utility and government fleets will continue to face even tougher budgets. Commercial firms will only be able to write off 50 percent of their sales expenses. Federal and state income taxes will be increased. Those that voted for "change" will certainly get it: that's assured. As a result, every consumer will be hard hit with the incremental costs being passed on.

Learn to live with fewer "deals;" learn to cope with new, extraordinary expenses and higher taxes. Learn to expect 10 times the pressure to contain costs from your boss with fewer people to do the work. Get creative and communicate your progress.

Sound the alarm - your career future may depend on it!


Subscribe to Our Newsletter

More Operations

A transparent blue background of a hand stamping a paper is the background of text that says "What about fleet policy exceptions?" with the Automotive Fleet logo in the bottom right corner.
Operations•by Faith Howell•October 20, 2026

Here's When You Should Make an Exception to Fleet Policy

Fleet policies are designed to create consistency, but not every driver or situation fits neatly within standard rules.

Read More →
A hand writing on an ipad with a transparent AI graphic over it
Operations•October 20, 2026

AI-Native or AI-Acquired: What Should Fleet Managers Look for in an AI Platform?

Six questions can help fleet managers look beyond AI marketing claims to evaluate integration, data access, and real-world operational performance.

Read More →
Chevin 2026 Buyes Guide cover
Sponsored•October 14, 2026

A buyer's guide to fleet management software in 2027

Buying fleet management software in 2027 means looking beyond features and price. As fleet operations, technology and expectations evolve, this guide explores what today’s fleet professionals should consider when choosing a system that can deliver value now and adapt to what comes next.

Read More →
Ad Loading...
An overhead image of a freeway system with no vehicles
Sponsored•by Shelley Mika•October 13, 2026

What Will Shape the Next Era of Fleet Management?

EVs, AI, and autonomous vehicles are reshaping fleet management. Discover what’s ahead—and how fleet leaders can prepare for the next era.

Read More →
A Cox Fleet technician working on the left with the rear view of a military man saluting a flag on the right
Operations•October 8, 2026

How Fleets Can Recruit and Train Veterans for Technician Roles

Here's how the technician shortage has affected uptime for fleets, and what to do about it.

Read More →
A transparent toll background with the Automotive Fleet logo and Neology logo on top.
Operations•October 5, 2026

Avis Budget Group Deploys Neology Toll Management Technology Across Major Brands

Neology’s neoFleet platform will manage toll transactions and toll-authority operations for vehicles across Avis, Budget, Payless, Budget Truck and Zipcar.

Read More →
Ad Loading...
wedding album, car, and car keys
Operations•by Chris Brown•October 2, 2026

Fleet Personal-Use Charges Edge Higher in 2026

Nearly eight in 10 surveyed fleets allow personal use of company vehicles, while just over half of respondents report charging employees for the privilege.

Read More →
AF news recap thumbnail
Operations•by Faith Howell•October 2, 2026

The Future of Fleet + What’s Changing Right Now | AF News Recap

Could developments overseas offer a preview of what’s coming for U.S. fleets? This week, we’re looking at the future of AI, autonomy, and electrification, plus Ford Pro’s new certified pre-owned program, smarter vehicle offboarding, and a new way for fleets to manage toll expenses.

Read More →
blue text over top of the top view of cars in a parking lot
Operations•by Faith Howell•October 1, 2026

How to Handle Vehicle Offboarding

What do fleet managers need to do when a driver leaves?

Read More →
Ad Loading...
Motorq Whitepaper Cover - Fleet Managers Ultimate Playbook
Sponsored•October 1, 2026

Fleet Manager’s Ultimate Playbook: Navigating the New Standard in OEM Connectivity

Rising operating costs, driver safety concerns, and unplanned downtime are putting unprecedented pressure on modern fleets. Discover how fleet managers use embedded OEM connectivity and real-time vehicle data to cut TCO, prevent downtime, and protect drivers without aftermarket telematics hardware.

Read More →