Automotive Fleet
MenuMENU
SearchSEARCH

Major Fleet Milestones: 1938 - 1959

As Automotive Fleet celebrates its 60th anniversary, we look back on the milestones that changed fleet management since its inception.

Mike Antich
Mike AntichFormer Editor and Associate Publisher
Read Mike's Posts
March 9, 2021
Major Fleet Milestones: 1938 - 1959

 

4 min to read


As Automotive Fleet celebrates its 60th anniversary, we look back on the milestones that changed fleet management since its inception. However, the fleet industry started earlier in the late 1930s and by the early 1940s, businesses started to migrate from salespeople reimbursement to company-owned fleets. 

Below is a sampling of more than 60 key milestones that helped shape the fleet industry, with this volume looking at milestones that occurred between 1930 to the end of the 1950s.

Ad Loading...

1938

Creation of the Open-End Lease: Early lessors offering full maintenance leases were R.A. Company, established by David, Harry, and Nathan Robinson, and Four Wheels, founded by Zollie Frank and Armund Schoen in 1938 and incorporated in 1939. 

Zollie Frank

Changing conditions in the 1950s led to the development of open-end or finance leasing, which PHH offered in 1951. Fleets wanted the ability to replace units after a 12-month period with off-balance sheet reporting. In 1981, the Swift Dodge vs. IRS court decision legitimized the use of the TRAC clause in an open-end lease.

1946

Development of National Account Programs: The first recorded purchase of a fleet management program, other than leasing, was by Gibson Art in 1946. Tire company national account billing started in the early 1950s. PHH, Consolidated Service Corp. (acquired by LeasePlan), and Mileage Consultants started selling tires nationally using centralized billing. 

Other programs, such as maintenance management, were not in great demand because gas was cheap and operating costs were manageable. This gradually began to change in response to market demands and new fleet services proliferated, such as fuel management, accident management, and personal use reporting.

To put it in perspective, Harry S. Truman was president when national account programs developed.

1946

Factory Ordering: Before the advent of OEM fleet departments, companies purchased vehicles from individual dealers. Use of dealer ordering codes by non-dealers, such as fleet lessors, allowed factory-direct orders. Another factory innovation was the introduction of fleet previews to provide new-model specifications to facilitate vehicle replacement planning.

Ad Loading...

1948

Drop-Ship/Courtesy Deliveries: In the late 1940s, the concept of volume drop-shipping fleet vehicles was developed. At that time, PHH factory-ordered vehicles were delivered to drivers by local dealers. Wheels and McCullagh (acquired by GE) started delivering cars from regional dealers directly to drivers. Ultimately, it became an accepted industry practice to pay a courtesy delivery fee to non-ordering dealers to deliver and prep vehicles.

1949

Expanding the functionality of automobile door keys, Chrysler invented technology that allowed car keys to start both the electric starter and the ignition of a vehicle with a turn of the ignition tumbler.

1950s

Creation of Fleet Maintenance Management Program:  Early lessors offering full maintenance leases were R.A. Company and Four Wheels. During the past 50 years, fleet maintenance programs evolved from preventive maintenance coupon books to sophisticated online systems. 

Fleet maintenance programs are continuing to evolve with many fleet management companies working to migrate programs to hand-held devices, along with incorporating vehicle-related data acquired by onboard telematics devices.

1951

Power steering first appeared on a Chrysler Imperial, which uses hydraulic power to amplify the pressure on the wheels as drivers turn the steering wheel.

Ad Loading...

1953

The first production car to have air conditioning as an option was the Chrysler Imperial. It came with low, medium and high settings.

1955

Creation of AALA: The American Automotive Leasing Association (AALA) was founded in 1955. AALA is comprised of commercial automotive fleet leasing and management companies. Its primary goal is to ensure that the business interests of the fleet leasing industry are properly represented to lawmakers, including the state and local governments. 

It has been highly successful in helping to influence legislation that, if left unmodified, would be highly detrimental to commercial fleets. In addition, AALA worked closely with state CATRALAs (Car and Truck Renting and Leasing Association) on influencing state legislation.

1957

Founding of NAFA: Finding the Society of Automotive Engineers (SAE) didn’t meet their needs, a group of fleet management professionals banded together to form the National Association of Fleet Management Administrators (later renamed NAFA Fleet Management Association). 

Emerson Parker, James Bekkering, and Sam Lee signed the articles of incorporation in 1957, and John Limpert was named its inaugural president, with 26 founding members. Membership was opened to suppliers as affiliates on a non-voting basis in 1968. The Association now has several thousand members in 33 regional chapters in the U.S. and Canada.

Ad Loading...

1958

Cruise control was introduced to allow drivers to maintain constant vehicle speed without needing to use the accelerator. The system made steady driving easier, and was first used in another Chrysler Imperial and by 1960 was a standard feature on all Cadillacs also.

1959

The modern three-pin seatbelt originated from Volvo, and the automaker decided to give away the patent to other carmakers for free, knowing it would save lives. It was invented by Volvo’s first safety engineer Nils Bohlin.

Subscribe to Our Newsletter

More Operations

SponsoredMay 15, 2026

Hybrids: Electrification Without the Challenges

For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.

Read More →
Man speaking during an Automotive Fleet interview beside text reading “The 60% Driver Improvement Nobody Expected!” with blue motion graphics background.
Operationsby Chris BrownMay 14, 2026

How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations

James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.

Read More →
A graphic with Ford Pro's Steven Sanstostasi's headshot on it representing the Fleet Meets series.
Operationsby Faith HowellMay 14, 2026

Fleet Meets: Steven Santostasi

This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.

Read More →
Ad Loading...
Cover of a whitepaper titled “The Hidden Costs of Departmentally Assigned Vehicles on Your Fleet” featuring a black fleet vehicle driving on a road at sunset. Subheadline reads: “Discover how your fleet can reduce costs and minimize risk by implementing vehicle sharing.” The document focuses on fleet optimization, vehicle sharing, cost reduction, utilization tracking, and risk management for fleet operations.
SponsoredMay 13, 2026

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools

Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.

Read More →
Three team members in shop with Chris
Operationsby Chris BrownMay 12, 2026

Soap Box Derby Challenge: Assembling the Crew

Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.

Read More →
Handshake graphic featuring BBL Fleet and Velcor Leasing Corporation logos announcing BBL Fleet’s acquisition of Velcor to expand fleet management services nationwide.
Operationsby News/Media ReleaseMay 8, 2026

BBL Fleet Acquires Velcor Leasing Corporation

BBL Fleet expanded its footprint in the fleet management industry with the acquisition of Velcor Leasing Corporation of Madison through a stock purchase agreement finalized Feb. 27, 2026.

Read More →
Ad Loading...
Graphic reading “What’s New From Lytx at Protect 2026?” over a blue digital network background highlighting Lytx fleet technology and AI-powered safety solutions.
Operationsby News/Media ReleaseMay 6, 2026

Lytx Introduces New AI Fleet Technologies at Protect 2026

The company introduced new AI-driven fleet safety and operations technologies during its annual user conference.

Read More →
Cover image for the “5th Annual Market Pulse Report” by Element titled “Navigating fleet management in 2026: Data and insights shaping the future of fleet and mobility.” The design features an aerial view of a cable-stayed bridge with vehicles traveling on a highway beside a dense green forest. A teal graphic panel overlays the lower portion of the image, with the Element logo and tagline “Intelligence in motion” at the bottom.
SponsoredMay 6, 2026

Fleet Costs Are Rising: Here’s How Leaders Are Responding

Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.

Read More →
A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →
Ad Loading...
OperationsApril 30, 2026

Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges

AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.

Read More →