Pat Sheehan is corporate fleet manager for Baxter Laboratories, Inc. in Deerfield, Illinois. Previously he was fleet and leasing manager for Hollingshead Oldsmobile and assistant public relations director for the Zurich-American Insurance Group. At the present time he is also program chairman of the midwest chapter of the National Association of Fleet Administrators.

Dear "Schlemiel":

Amen! Why don't you quit? Surely a man with your background will have no trouble finding a job with a company that is more appreciative towards its field representatives. Only a bare handful of companies still must follow the capital "conservation" concept in fleet management, so I'm sure your next job will provide a better car. Or, why not inquire about reimbursement for using your own automobile, one more suited to your taste. Would you accept, if your firm offered $19.00 weekly plus 3 1/2 cents per mile for the use of your personal car? I'm sure such an offer sounds good to you, but, I promise you, you'd be back asking for a company car within 2 years . . . hat in hand.

Let's face some facts. You willingly agreed to perform certain defined services for your employer in return for specific compensation and company-provided transportation. You do not indicate that the company has reneged on its part of the bargain, but you have. You are accepting the financial compensation, benefits, and free transportation as offered, but are doing so in bad faith. Rather than bitch and cheat, why not negotiate a new contract with your present employer or with another employer?

Cars cost money, big money! It's nothing for a fleet manager to come up with an annual net cost of 9 cents per mile when he totals his interest, depreciation, repairs, insurance, license and tax fees, running and administrative expenses. If your company has 300 cars, averaging 20,000 miles annually, its spending .09 ´ 6,000,000 miles, or over-half aMillion dollars each year. The initial investment for these cheapie" units approximates $600,000.00 (plus tax). That's alot ofcapital totie up when its worth 9% or better.

That initial investment would tie up, additionally, approximately:

• $15,000 fore for radios

• $51,000 more for Auto Transmissions

• $25,500 more for Power Steering

• $94,500 more for Air Conditioning

• ora total of $176,000 at9%!

Obviously there are good reasons why your fleet manager cannot sellmanagement on "luxury" vehicles, even though he can show concrete resale advantages. Quite probably the unit you complain about is the common car for your industry. If it wasn't, you and your co-workers would allbe working for your competition. Nor is conservation of working capital always the only reason for a "tight" car program. The scrutiny of regulatory bodies orstock holders mayalso be bearing down.

Two thoughts very likely guide managements' attitude onmaintenance: restriction of cash flow and "down-time." A fleet manager can choose: "preventative" maintenance or "demand" maintenance. However he chooses, he has backers and evidence to support his thinking.

If he is buying "utility" only, and replacing his cars about every 18 months (30-40,000 miles) he very likely has strong evidence to support the policy. And if shortage of capital is prime consideration, his course is true.

Whatever the reasons, you bargained for free transportation and you got it. You may not think much of it in retrospect, but the IRS will tell you it's worth $1200 a year to you. Since you are not paying the company anything for its use, you actually should be paying income taxes on that $1200 annual employee "bonus." Incidentally, the IRS boys don't differentiate between makes, models, body styles oroptional equipment.