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Market Trends•by Mike Antich•April 26, 2011

The Uncontrollable Component of Fleet OTD

Fleet vehicles are vulnerable to order-to-delivery (OTD) delays because most fleet orders are concentrated among a handful of models. There are four components to the OTD cycle: ordering, scheduling, production, and delivery.The weak link is the delivery component. For the past 10 years, the nationwide rail car shortage has been a factor in fleet delivery delays. This promises to continue to be the case for the foreseeable future. Here's why.

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Market Trends•by Mike Antich•April 19, 2011

The Ongoing Used-Vehicle Shortage Favors a Short-Cycling Replacement Strategy

Nearly all fleet-related costs, both fixed and operating, are influenced by when a vehicle is replaced. Today’s exceptionally strong wholesale market caused by the shortage of used vehicles offers commercial fleet managers an “out-of-the box opportunity” to short cycle vehicles. A shorter 24-month replacement cycle will maximize resale values, reduce operating costs and downtime, increase negotiating leverage with OEMs, and improve driver morale,

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Market Trends•by Mike Antich•April 1, 2011

Time to Add a New Component in Calculating Total Cost of Ownership

Senior management at many U.S. companies continues to support corporate sustainability and green fleet initiatives. In the past, “green” was difficult to “pencil out” when calculating vehicle lifecycle costs, but those days appear to be ending.

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An Enigma No More

A lot of the fleet community knows Joe Gholston, the pivotal sage at Chrysler Fleet in Detroit. I think I’ve known him for maybe 20 years and have never found anyone who doesn’t like him and respect him as I do.

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Market Trends•by Mike Antich•March 11, 2011

Beware of Expunged MVR Records

Expungement is a legal procedure to remove driving infractions from an individual's motor vehicle record. Fleet managers report MVR expungements are occurring with greater frequency -- more so in some jurisdictions than others. The most notorious is Puerto Rico, but there has also been an increase in expungements of DUIs and speeding tickets in other jurisdictions, such as Illinois and Pennsylvania. Fleet managers need to be aware of the negligent entrustment ramifications.

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Market Trends•by Mike Antich•March 1, 2011

Higher Raw Material Costs Put Upward Pressure on Replacement Tire Prices

Retail transaction prices for light-truck replacement tire were up 12.5% in 2010, and 11% for the passenger car segment. Although retail tire prices increased, replacement tire pricing for commercial fleets remained relatively flat because of pre-existing national account pricing agreements. However, it would be short-sighted to believe national account vendors will indefinitely absorb tire cost increases without passing them on to their fleet customers.

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Market Trends•by Mike Antich•February 15, 2011

In a Slow Economy, Driver Violations Increase

Vehicle violations now represent 1-3 percent of total fleet costs. Traffic violation revenues are being used by many jurisdictions to balance budgets. In an era of budget deficits, fleets are discovering a sharp uptick in driver violations.

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Market Trends•by Mike Antich•February 15, 2011

In a Slow Economy, Driver Violations Increase

Vehicle violations represent 1-3 percent of total fleet costs and vary by fleet depending on the cities and states where vehicles operate.

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Market Trends•by Mike Antich•February 8, 2011

Idea Emerges to Create a Networking Group for Women in Fleet

There are a number of professional women’s associations. Why not an association for women in fleet? This was the thought that struck Carolyn Edwards. Since then, four founding members have joined the group.

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Market Trends•by Mike Antich•January 28, 2011

NHTSA Proposes Speed Limiters on HD Trucks: Will Medium-Duties be Next?

The proposed rulemaking would amend the federal motor vehicle safety standards requiring OEMs to install speed limiters on trucks with a GVWR greater than 26,000 lbs. An electronic control module (ECM) would limit the maximum speed to no more than 68 mph. Many independent truckers, the Owner-Operator Independent Drivers Association (OOIDA), and the Truckload Carriers Association (TCA) are opposed to the rulemaking.

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Market Trends•by Mike Antich•January 25, 2011

Fleet Applications Emerge for Mobile Communication Devices

Applications for mobile communication devices to perform fleet-related tasks will become increasingly prevalent in the near future. These emerging applications will help enhance driver productivity and communication.

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Market Trends•by Mike Antich•January 18, 2011

High-Mileage Used Fleet Vehicles Create Difficulties Financing 'C' and 'D' Paper Buyers

Fleet managers are manufacturers of used vehicles. Many of the buyers of used fleet vehicles are C and D paper buyers. One unintended consequence to companies extending the service lives of fleet vehicles is that it is more difficult for used-vehicle dealers to finance C and D paper buyers in the secondary funding market. The issue, from the perspective of the finance company, is the remaining life of higher-mileage vehicles.

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